What Can We Make Of Village Super Market's (NASDAQ:VLGE.A) CEO Compensation?

Robert Sumas has been the CEO of Village Super Market, Inc. (NASDAQ:VLGE.A) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Village Super Market pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Village Super Market

How Does Total Compensation For Robert Sumas Compare With Other Companies In The Industry?

According to our data, Village Super Market, Inc. has a market capitalization of US$316m, and paid its CEO total annual compensation worth US$1.7m over the year to July 2020. 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$815k.

On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$912k. This suggests that Robert Sumas is paid more than the median for the industry. Furthermore, Robert Sumas directly owns US$22m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. According to our research, Village Super Market has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Village Super Market, Inc.'s Growth Numbers

Over the past three years, Village Super Market, Inc. has seen its earnings per share (EPS) grow by 5.2% per year. In the last year, its revenue is up 14%.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Village Super Market, Inc. Been A Good Investment?

Village Super Market, Inc. has generated a total shareholder return of 4.0% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, Robert is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, EPS growth is not moving in the right direction, and the returns to shareholders could have been better, over the last three years. We'd stop short of saying CEO pay is inappropriate, but we'd like to see healthier business growth from the company, moving forward.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Village Super Market we think you should know about.

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. 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.
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