Shareholders Will Probably Not Have Any Issues With Weis Markets, Inc.'s (NYSE:WMK) CEO Compensation

Performance at Weis Markets, Inc. (NYSE:WMK) has been reasonably good and CEO Jonathan Weis has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29 April 2021. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Weis Markets

How Does Total Compensation For Jonathan Weis Compare With Other Companies In The Industry?

According to our data, Weis Markets, Inc. has a market capitalization of US$1.4b, and paid its CEO total annual compensation worth US$9.0m over the year to December 2020. We note that's an increase of 37% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

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$8.5m. This suggests that Weis Markets remunerates its CEO largely in line with the industry average. What's more, Jonathan Weis holds US$559m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$1.1m	US$1.1m	12%
Other	US$7.9m	US$5.5m	88%
Total Compensation	US$9.0m	US$6.6m	100%

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. In Weis Markets' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Weis Markets, Inc.'s Growth

Weis Markets, Inc. has seen its earnings per share (EPS) increase by 6.5% a year over the past three years. It achieved revenue growth of 16% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Weis Markets, Inc. Been A Good Investment?

Weis Markets, Inc. has served shareholders reasonably well, with a total return of 25% over three years. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

So you may want to check if insiders are buying Weis Markets shares with their own money (free access).

Switching gears from Weis Markets, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

When trading Weis Markets or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.