Here's Why Some Shareholders May Not Be Too Generous With BJ's Restaurants, Inc.'s (NASDAQ:BJRI) CEO Compensation This Year

The underwhelming performance at BJ's Restaurants, Inc. (NASDAQ:BJRI) recently has probably not pleased shareholders. At the upcoming AGM on 09 June 2021, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for BJ's Restaurants

How Does Total Compensation For Greg Trojan Compare With Other Companies In The Industry?

According to our data, BJ's Restaurants, Inc. has a market capitalization of US$1.2b, and paid its CEO total annual compensation worth US$2.4m over the year to December 2020. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$805k.

On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$3.6m. That is to say, Greg Trojan is paid under the industry median. Moreover, Greg Trojan also holds US$3.6m worth of BJ's Restaurants stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$805k	US$850k	33%
Other	US$1.6m	US$1.5m	67%
Total Compensation	US$2.4m	US$2.4m	100%

On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that BJ's Restaurants pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

BJ's Restaurants, Inc.'s Growth

BJ's Restaurants, Inc. has reduced its earnings per share by 87% a year over the last three years. Its revenue is down 34% over the previous year.

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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 BJ's Restaurants, Inc. Been A Good Investment?

With a three year total loss of 4.3% for the shareholders, BJ's Restaurants, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for BJ's Restaurants that investors should look into moving forward.

Important note: BJ's Restaurants 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.

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