We Take A Look At Whether Ingles Markets, Incorporated's (NASDAQ:IMKT.A) CEO May Be Underpaid

The solid performance at Ingles Markets, Incorporated (NASDAQ:IMKT.A) has been impressive and shareholders will probably be pleased to know that CEO James Lanning has delivered. At the upcoming AGM on 15 February 2022, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Ingles Markets

Comparing Ingles Markets, Incorporated's CEO Compensation With the industry

According to our data, Ingles Markets, Incorporated has a market capitalization of US$1.6b, and paid its CEO total annual compensation worth US$2.0m over the year to September 2021. We note that's an increase of 57% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$903k.

On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$4.6m. In other words, Ingles Markets pays its CEO lower than the industry median. Moreover, James Lanning also holds US$1.1m worth of Ingles Markets stock directly under their own name.

Component	2021	2020	Proportion (2021)
Salary	US$903k	US$753k	46%
Other	US$1.1m	US$507k	54%
Total Compensation	US$2.0m	US$1.3m	100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Ingles Markets is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Ingles Markets, Incorporated's Growth Numbers

Over the past three years, Ingles Markets, Incorporated has seen its earnings per share (EPS) grow by 55% per year. Its revenue is up 9.9% over the last year.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Ingles Markets, Incorporated Been A Good Investment?

We think that the total shareholder return of 194%, over three years, would leave most Ingles Markets, Incorporated shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term 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 Ingles Markets that investors should think about before committing capital to this stock.

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.