The Compensation For Performance Food Group Company's (NYSE:PFGC) CEO Looks Deserved And Here's Why
Key Insights
- Performance Food Group to hold its Annual General Meeting on 19th of November
- Salary of US$1.20m is part of CEO George Holm's total remuneration
- The total compensation is similar to the average for the industry
- Over the past three years, Performance Food Group's EPS grew by 16% and over the past three years, the total shareholder return was 65%
The performance at Performance Food Group Company (NYSE:PFGC) has been quite strong recently and CEO George Holm has played a role in it. Coming up to the next AGM on 19th of November, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for Performance Food Group
How Does Total Compensation For George Holm Compare With Other Companies In The Industry?
Our data indicates that Performance Food Group Company has a market capitalization of US$15b, and total annual CEO compensation was reported as US$12m for the year to June 2025. We note that's an increase of 13% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.
In comparison with other companies in the American Consumer Retailing industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$11m. This suggests that Performance Food Group remunerates its CEO largely in line with the industry average. What's more, George Holm holds US$222m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | US$1.2m | US$1.2m | 10% |
| Other | US$10m | US$9.2m | 90% |
| Total Compensation | US$12m | US$10m | 100% |
On an industry level, around 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 non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Performance Food Group Company's Growth Numbers
Over the past three years, Performance Food Group Company has seen its earnings per share (EPS) grow by 16% per year. Its revenue is up 12% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Performance Food Group Company Been A Good Investment?
Most shareholders would probably be pleased with Performance Food Group Company for providing a total return of 65% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Performance Food Group (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.
Important note: Performance Food Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Valuation is complex, but we're here to simplify it.
Discover if Performance Food Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.