Most Shareholders Will Probably Agree With Performance Food Group Company's (NYSE:PFGC) CEO Compensation

Under the guidance of CEO George Holm, Performance Food Group Company (NYSE:PFGC) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16 November 2022. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Performance Food Group

How Does Total Compensation For George Holm Compare With Other Companies In The Industry?

At the time of writing, our data shows that Performance Food Group Company has a market capitalization of US$8.5b, and reported total annual CEO compensation of US$8.7m for the year to July 2022. That's a modest increase of 5.2% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

On examining similar-sized companies in the industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$8.7m. From this we gather that George Holm is paid around the median for CEOs in the industry. What's more, George Holm holds US$121m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	US$1.1m	US$1.0m	12%
Other	US$7.6m	US$7.2m	88%
Total Compensation	US$8.7m	US$8.2m	100%

On an industry level, roughly 17% of total compensation represents salary and 83% is other remuneration. Performance Food Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Performance Food Group Company's Growth

Over the last three years, Performance Food Group Company has shrunk its earnings per share by 25% per year. In the last year, its revenue is up 62%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Performance Food Group Company Been A Good Investment?

Performance Food Group Company has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

The overall company performance has been commendable, however there are still areas for improvement. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

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 2 warning signs (and 1 which makes us a bit uncomfortable) in Performance Food Group 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. 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.