John Bean Technologies Corporation's (NYSE:JBT) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• John Bean Technologies' Annual General Meeting to take place on 10th of May
• Salary of US$921.9k is part of CEO Brian Deck's total remuneration
• Total compensation is similar to the industry average
• John Bean Technologies' EPS grew by 8.4% over the past three years while total shareholder loss over the past three years was 36%

In the past three years, the share price of John Bean Technologies Corporation (NYSE:JBT) has struggled to grow and now shareholders are sitting on a loss. 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 10th of May 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. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for John Bean Technologies

How Does Total Compensation For Brian Deck Compare With Other Companies In The Industry?

Our data indicates that John Bean Technologies Corporation has a market capitalization of US$2.9b, and total annual CEO compensation was reported as US$6.2m for the year to December 2023. That's a notable increase of 29% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$922k.

On comparing similar companies from the American Machinery industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$6.1m. So it looks like John Bean Technologies compensates Brian Deck in line with the median for the industry. Moreover, Brian Deck also holds US$9.2m worth of John Bean Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$922k	US$888k	15%
Other	US$5.3m	US$3.9m	85%
Total Compensation	US$6.2m	US$4.8m	100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Our data reveals that John Bean Technologies allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

John Bean Technologies Corporation's Growth

John Bean Technologies Corporation's earnings per share (EPS) grew 8.4% per year over the last three years. It saw its revenue drop 24% over the last year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has John Bean Technologies Corporation Been A Good Investment?

Few John Bean Technologies Corporation shareholders would feel satisfied with the return of -36% over three years. 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. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. 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.

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).

Switching gears from John Bean Technologies, 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.