Allen Shiver has been the CEO of Flowers Foods, Inc. (NYSE:FLO) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Allen Shiver’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Flowers Foods, Inc. has a market cap of US$4.3b, and is paying total annual CEO compensation of US$6.5m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$4.7m.
Thus we can conclude that Allen Shiver receives more in total compensation than the median of a group of companies in the same market, and of similar size to Flowers Foods, Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Flowers Foods has changed over time.
Is Flowers Foods, Inc. Growing?
On average over the last three years, Flowers Foods, Inc. has shrunk earnings per share by 6.4% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Flowers Foods, Inc. Been A Good Investment?
With a total shareholder return of 30% over three years, Flowers Foods, Inc. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Flowers Foods, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
While shareholder returns are acceptable, they don’t delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Flowers Foods (free visualization of insider trades).
If you want to buy a stock that is better than Flowers Foods, this free list of high return, low debt companies is a great place to look.
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