We Discuss Why Borges Agricultural & Industrial Nuts, S.A.'s (BME:BAIN) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

Key Insights

• Borges Agricultural & Industrial Nuts to hold its Annual General Meeting on 28th of November
• Salary of €182.0k is part of CEO David Prats Palomo's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Borges Agricultural & Industrial Nuts' EPS fell by 106% and over the past three years, the total shareholder return was 4.3%

The share price of Borges Agricultural & Industrial Nuts, S.A. (BME:BAIN) has struggled to grow by much over the last few years and probably has to do with the fact that earnings growth has gone backwards. Some of these issues will occupy shareholders' minds as the AGM rolls around on 28th of November. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Borges Agricultural & Industrial Nuts

Comparing Borges Agricultural & Industrial Nuts, S.A.'s CEO Compensation With The Industry

Our data indicates that Borges Agricultural & Industrial Nuts, S.A. has a market capitalization of €67m, and total annual CEO compensation was reported as €182k for the year to May 2024. That is, the compensation was roughly the same as last year. Notably, the salary of €182k is the entirety of the CEO compensation.

In comparison with other companies in the Spain Food industry with market capitalizations under €191m, the reported median total CEO compensation was €224k. From this we gather that David Prats Palomo is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	€182k	€181k	100%
Other	-	-	-
Total Compensation	€182k	€181k	100%

Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. Speaking on a company level, Borges Agricultural & Industrial Nuts prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Borges Agricultural & Industrial Nuts, S.A.'s Growth

Borges Agricultural & Industrial Nuts, S.A. has reduced its earnings per share by 106% a year over the last three years. It saw its revenue drop 13% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Borges Agricultural & Industrial Nuts, S.A. Been A Good Investment?

Borges Agricultural & Industrial Nuts, S.A. has not done too badly by shareholders, with a total return of 4.3%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Borges Agricultural & Industrial Nuts rewards its CEO solely through a salary, ignoring non-salary benefits completely. The flat share price growth combined with the the fact that earnings have failed to grow makes us wonder whether the share price will have any further strong momentum. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Borges Agricultural & Industrial Nuts that investors should look into moving forward.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.