We Think Some Shareholders May Hesitate To Increase JD Sports Fashion Plc's (LON:JD.) CEO Compensation

Key Insights

• JD Sports Fashion will host its Annual General Meeting on 2nd of July
• CEO Régis Schultz's total compensation includes salary of UK£1.07m
• The total compensation is similar to the average for the industry
• JD Sports Fashion's EPS grew by 10% over the past three years while total shareholder loss over the past three years was 32%

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The underwhelming share price performance of JD Sports Fashion Plc (LON:JD.) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 2nd of July. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for JD Sports Fashion

How Does Total Compensation For Régis Schultz Compare With Other Companies In The Industry?

Our data indicates that JD Sports Fashion Plc has a market capitalization of UK£3.9b, and total annual CEO compensation was reported as UK£2.0m for the year to February 2025. Notably, that's an increase of 29% over the year before. Notably, the salary which is UK£1.07m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the British Specialty Retail industry with market capitalizations ranging between UK£2.9b and UK£8.8b had a median total CEO compensation of UK£2.2m. So it looks like JD Sports Fashion compensates Régis Schultz in line with the median for the industry. Moreover, Régis Schultz also holds UK£4.2m worth of JD Sports Fashion stock directly under their own name.

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Our data reveals that JD Sports Fashion allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at JD Sports Fashion Plc's Growth Numbers

JD Sports Fashion Plc's earnings per share (EPS) grew 10% per year over the last three years. In the last year, its revenue is up 8.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has JD Sports Fashion Plc Been A Good Investment?

Few JD Sports Fashion Plc shareholders would feel satisfied with the return of -32% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for JD Sports Fashion that investors should think about before committing capital to this stock.

Switching gears from JD Sports Fashion, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.