Shareholders May Not Be So Generous With Janus International Group, Inc.'s (NYSE:JBI) CEO Compensation And Here's Why

Key Insights

• Janus International Group's Annual General Meeting to take place on 24th of June
• CEO Ramey Jackson's total compensation includes salary of US$866.5k
• Total compensation is similar to the industry average
• Janus International Group's three-year loss to shareholders was 0.2% while its EPS grew by 8.8% over the past three years

As many shareholders of Janus International Group, Inc. (NYSE:JBI) will be aware, they have not made a gain on their investment in the past three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 24th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Janus International Group

How Does Total Compensation For Ramey Jackson Compare With Other Companies In The Industry?

At the time of writing, our data shows that Janus International Group, Inc. has a market capitalization of US$1.9b, and reported total annual CEO compensation of US$4.8m for the year to December 2023. Notably, that's an increase of 32% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$867k.

For comparison, other companies in the American Building industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.5m. This suggests that Janus International Group remunerates its CEO largely in line with the industry average. Furthermore, Ramey Jackson directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$867k	US$607k	18%
Other	US$3.9m	US$3.0m	82%
Total Compensation	US$4.8m	US$3.6m	100%

On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. It's interesting to note that Janus International Group pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Janus International Group, Inc.'s Growth

Over the past three years, Janus International Group, Inc. has seen its earnings per share (EPS) grow by 8.8% per year. It achieved revenue growth of 2.7% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Janus International Group, Inc. Been A Good Investment?

Given the total shareholder loss of 0.2% over three years, many shareholders in Janus International Group, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Janus International Group that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.

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