Key Insights

• John B. Sanfilippo & Son's Annual General Meeting to take place on 30th of October
• CEO Jeffrey Sanfilippo's total compensation includes salary of US$850.0k
• The overall pay is 54% above the industry average
• John B. Sanfilippo & Son's total shareholder return over the past three years was 23% while its EPS was down 0.01% over the past three years

The share price of John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 30th of October. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Comparing John B. Sanfilippo & Son, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that John B. Sanfilippo & Son, Inc. has a market capitalization of US$1.1b, and reported total annual CEO compensation of US$5.3m for the year to June 2024. Notably, that's an increase of 88% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$850k.

For comparison, other companies in the American Food industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$3.4m. Hence, we can conclude that Jeffrey Sanfilippo is remunerated higher than the industry median. What's more, Jeffrey Sanfilippo holds US$9.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. In John B. Sanfilippo & Son's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

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

Over the last three years, John B. Sanfilippo & Son, Inc. has not seen its earnings per share change much, though they have deteriorated slightly. In the last year, its revenue is up 6.7%.

The lack of EPS growth is certainly uninspiring. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has John B. Sanfilippo & Son, Inc. Been A Good Investment?

With a total shareholder return of 23% over three years, John B. Sanfilippo & Son, 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.

In Summary...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns 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. That's why we did some digging and identified 1 warning sign for John B. Sanfilippo & Son that you should be aware of before investing.

Switching gears from John B. Sanfilippo & Son, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.