Key Insights

• BJ's Wholesale Club Holdings' Annual General Meeting to take place on 20th of June
• Salary of US$1.35m is part of CEO Bob Eddy's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, BJ's Wholesale Club Holdings' EPS grew by 9.3% and over the past three years, the total shareholder return was 89%

CEO Bob Eddy has done a decent job of delivering relatively good performance at BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of June. Here is our take on why we think the CEO compensation looks appropriate.

Comparing BJ's Wholesale Club Holdings, Inc.'s CEO Compensation With The Industry

Our data indicates that BJ's Wholesale Club Holdings, Inc. has a market capitalization of US$12b, and total annual CEO compensation was reported as US$11m for the year to February 2024. Notably, that's a decrease of 11% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.4m.

For comparison, other companies in the American Consumer Retailing industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$11m. This suggests that BJ's Wholesale Club Holdings remunerates its CEO largely in line with the industry average. Moreover, Bob Eddy also holds US$37m worth of BJ's Wholesale Club Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. There isn't a significant difference between BJ's Wholesale Club Holdings and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

BJ's Wholesale Club Holdings, Inc.'s Growth

BJ's Wholesale Club Holdings, Inc. has seen its earnings per share (EPS) increase by 9.3% a year over the past three years. Its revenue is up 3.2% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BJ's Wholesale Club Holdings, Inc. Been A Good Investment?

Most shareholders would probably be pleased with BJ's Wholesale Club Holdings, Inc. for providing a total return of 89% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

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 2 warning signs for BJ's Wholesale Club Holdings that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.