Stock Analysis

What Can We Conclude About John B. Sanfilippo & Son's (NASDAQ:JBSS) CEO Pay?

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NasdaqGS:JBSS
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This article will reflect on the compensation paid to Jeffrey Sanfilippo who has served as CEO of John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) since 2006. This analysis will also assess whether John B. Sanfilippo & Son pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

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$896m, and paid its CEO total annual compensation worth US$3.6m over the year to June 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$643k.

On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$2.1m. This suggests that Jeffrey Sanfilippo is paid more than the median for the industry. Furthermore, Jeffrey Sanfilippo directly owns US$8.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary US$643k US$585k 18%
Other US$3.0m US$2.0m 82%
Total CompensationUS$3.6m US$2.6m100%

Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. John B. Sanfilippo & Son 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.

ceo-compensation
NasdaqGS:JBSS CEO Compensation January 26th 2021

John B. Sanfilippo & Son, Inc.'s Growth

John B. Sanfilippo & Son, Inc. has seen its earnings per share (EPS) increase by 13% a year over the past three years. Its revenue is down 1.9% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 John B. Sanfilippo & Son, Inc. Been A Good Investment?

Boasting a total shareholder return of 44% over three years, John B. Sanfilippo & Son, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we touched on above, John B. Sanfilippo & Son, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Jeffrey deserves a raise!

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 1 warning sign for John B. Sanfilippo & Son that investors should look into moving forward.

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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