Pilgrim's Pride Corporation's (NASDAQ:PPC) CEO Looks Due For A Compensation Raise

Key Insights

• Pilgrim's Pride to hold its Annual General Meeting on 1st of May
• Salary of US$942.3k is part of CEO Fabio Sandri's total remuneration
• The total compensation is 60% less than the average for the industry
• Pilgrim's Pride's total shareholder return over the past three years was 46% while its EPS grew by 52% over the past three years

The solid performance at Pilgrim's Pride Corporation (NASDAQ:PPC) has been impressive and shareholders will probably be pleased to know that CEO Fabio Sandri has delivered. At the upcoming AGM on 1st of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Pilgrim's Pride

How Does Total Compensation For Fabio Sandri Compare With Other Companies In The Industry?

At the time of writing, our data shows that Pilgrim's Pride Corporation has a market capitalization of US$8.5b, and reported total annual CEO compensation of US$2.6m for the year to December 2023. Notably, that's a decrease of 14% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$942k.

For comparison, other companies in the American Food industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$6.4m. In other words, Pilgrim's Pride pays its CEO lower than the industry median. Furthermore, Fabio Sandri directly owns US$6.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$942k	US$900k	37%
Other	US$1.6m	US$2.1m	63%
Total Compensation	US$2.6m	US$3.0m	100%

On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. Pilgrim's Pride pays out 37% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Pilgrim's Pride Corporation's Growth Numbers

Over the past three years, Pilgrim's Pride Corporation has seen its earnings per share (EPS) grow by 52% per year. In the last year, its revenue changed by just 0.6%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Pilgrim's Pride Corporation Been A Good Investment?

Boasting a total shareholder return of 46% over three years, Pilgrim's Pride Corporation 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Pilgrim's Pride that you should be aware of before investing.

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.