Tom Giacomini became the CEO of John Bean Technologies Corporation (NYSE:JBT) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Tom Giacomini’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that John Bean Technologies Corporation has a market cap of US$3.6b, and reported total annual CEO compensation of US$4.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$859k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
So Tom Giacomini receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at John Bean Technologies has changed from year to year.
Is John Bean Technologies Corporation Growing?
On average over the last three years, John Bean Technologies Corporation has grown earnings per share (EPS) by 19% each year (using a line of best fit). In the last year, its revenue is up 3.8%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has John Bean Technologies Corporation Been A Good Investment?
Most shareholders would probably be pleased with John Bean Technologies Corporation for providing a total return of 35% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Tom Giacomini is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling John Bean Technologies (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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