Here's Why John B. Sanfilippo & Son, Inc.'s (NASDAQ:JBSS) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• John B. Sanfilippo & Son will host its Annual General Meeting on 2nd of November
• CEO Jeffrey Sanfilippo's total compensation includes salary of US$790.8k
• Total compensation is similar to the industry average
• Over the past three years, John B. Sanfilippo & Son's EPS grew by 4.8% and over the past three years, the total shareholder return was 59%

Under the guidance of CEO Jeffrey Sanfilippo, John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) 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 2nd of November. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for John B. Sanfilippo & Son

Comparing John B. Sanfilippo & Son, Inc.'s CEO Compensation With The Industry

According to our data, John B. Sanfilippo & Son, Inc. has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$2.8m over the year to June 2023. Notably, that's an increase of 59% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$791k.

For comparison, other companies in the American Food industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$3.3m. So it looks like John B. Sanfilippo & Son compensates Jeffrey Sanfilippo in line with the median for the industry. Moreover, Jeffrey Sanfilippo also holds US$11m worth of John B. Sanfilippo & Son stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$791k	US$764k	28%
Other	US$2.0m	US$1.0m	72%
Total Compensation	US$2.8m	US$1.8m	100%

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. Although there is a difference in how total compensation is set, John B. Sanfilippo & Son more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at John B. Sanfilippo & Son, Inc.'s Growth Numbers

John B. Sanfilippo & Son, Inc.'s earnings per share (EPS) grew 4.8% per year over the last three years. It achieved revenue growth of 4.6% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. 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 John B. Sanfilippo & Son, Inc. Been A Good Investment?

Boasting a total shareholder return of 59% over three years, John B. Sanfilippo & Son, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

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've identified 1 warning sign for John B. Sanfilippo & Son that investors should be aware of in a dynamic business environment.

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.