Key Insights

• Sysco will host its Annual General Meeting on 15th of November
• Total pay for CEO Kevin Hourican includes US$1.34m salary
• The overall pay is 45% above the industry average
• Sysco's total shareholder return over the past three years was 7.1% while its EPS grew by 43% over the past three years

Performance at Sysco Corporation (NYSE:SYY) has been reasonably good and CEO Kevin Hourican has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of November. However, some shareholders may still want to keep CEO compensation within reason.

How Does Total Compensation For Kevin Hourican Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sysco Corporation has a market capitalization of US$38b, and reported total annual CEO compensation of US$16m for the year to June 2024. Notably, that's an increase of 8.8% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

In comparison with other companies in the American Consumer Retailing industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$11m. This suggests that Kevin Hourican is paid more than the median for the industry. Moreover, Kevin Hourican also holds US$25m worth of Sysco stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. It's interesting to note that Sysco allocates a smaller portion of compensation to salary 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.

Sysco Corporation's Growth

Sysco Corporation has seen its earnings per share (EPS) increase by 43% a year over the past three years. Its revenue is up 3.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Sysco Corporation Been A Good Investment?

Sysco Corporation has generated a total shareholder return of 7.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 1 warning sign for Sysco 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.