We Think Shareholders May Want To Consider A Review Of SpartanNash Company's (NASDAQ:SPTN) CEO Compensation Package

Key Insights

• SpartanNash to hold its Annual General Meeting on 21st of May
• Total pay for CEO Tony Sarsam includes US$1.02m salary
• The overall pay is 123% above the industry average
• SpartanNash's three-year loss to shareholders was 37% while its EPS was down 84% over the past three years

Our free stock report includes 4 warning signs investors should be aware of before investing in SpartanNash. Read for free now.

Shareholders will probably not be too impressed with the underwhelming results at SpartanNash Company (NASDAQ:SPTN) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 21st of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for SpartanNash

Comparing SpartanNash Company's CEO Compensation With The Industry

At the time of writing, our data shows that SpartanNash Company has a market capitalization of US$644m, and reported total annual CEO compensation of US$7.0m for the year to December 2024. Notably, that's a decrease of 30% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On comparing similar companies from the American Consumer Retailing industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$3.1m. Hence, we can conclude that Tony Sarsam is remunerated higher than the industry median. Moreover, Tony Sarsam also holds US$2.8m worth of SpartanNash stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$981k	15%
Other	US$6.0m	US$9.0m	85%
Total Compensation	US$7.0m	US$10.0m	100%

Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. SpartanNash pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

SpartanNash Company's Growth

SpartanNash Company has reduced its earnings per share by 84% a year over the last three years. In the last year, its revenue is down 1.9%.

Few shareholders would be pleased to read that EPS have declined. 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has SpartanNash Company Been A Good Investment?

Few SpartanNash Company shareholders would feel satisfied with the return of -37% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which doesn't sit too well with us) in SpartanNash we think you should know about.

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.

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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.