We Think Shareholders Are Less Likely To Approve A Pay Rise For Campbell Soup Company's (NYSE:CPB) CEO For Now

Key Insights

• Campbell Soup will host its Annual General Meeting on 29th of November
• Total pay for CEO Mark Clouse includes US$1.20m salary
• The overall pay is comparable to the industry average
• Campbell Soup's three-year loss to shareholders was 7.9% while its EPS grew by 14% over the past three years

In the past three years, the share price of Campbell Soup Company (NYSE:CPB) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 29th of November could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Campbell Soup

How Does Total Compensation For Mark Clouse Compare With Other Companies In The Industry?

Our data indicates that Campbell Soup Company has a market capitalization of US$12b, and total annual CEO compensation was reported as US$12m for the year to July 2023. Notably, that's an increase of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

In comparison with other companies in the American Food industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$13m. From this we gather that Mark Clouse is paid around the median for CEOs in the industry. What's more, Mark Clouse holds US$10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.2m	US$1.2m	10%
Other	US$10m	US$9.1m	90%
Total Compensation	US$12m	US$10m	100%

Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. Campbell Soup pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Campbell Soup Company's Growth Numbers

Over the past three years, Campbell Soup Company has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue is up 9.3%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Campbell Soup Company Been A Good Investment?

Since shareholders would have lost about 7.9% over three years, some Campbell Soup Company investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Campbell Soup that investors should be aware of in a dynamic business environment.

Important note: Campbell Soup 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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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.