Key Insights

• Campbell Soup will host its Annual General Meeting on 19th of November
• Salary of US$1.25m is part of CEO Mark Clouse's total remuneration
• The overall pay is comparable to the industry average
• Campbell Soup's EPS declined by 17% over the past three years while total shareholder return over the past three years was 18%

The share price of Campbell Soup Company (NASDAQ:CPB) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 19th of November. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Comparing Campbell Soup Company's CEO Compensation With The Industry

At the time of writing, our data shows that Campbell Soup Company has a market capitalization of US$13b, and reported total annual CEO compensation of US$12m for the year to July 2024. That's a modest increase of 4.8% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

On comparing similar companies in the American Food industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$13m. This suggests that Campbell Soup remunerates its CEO largely in line with the industry average. What's more, Mark Clouse holds US$21m 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, roughly 19% of total compensation represents salary and 81% is other remuneration. Campbell Soup pays a modest slice of remuneration through salary, as compared 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.

Campbell Soup Company's Growth

Campbell Soup Company has reduced its earnings per share by 17% a year over the last three years. It achieved revenue growth of 3.0% over the last year.

The decline in EPS is a bit concerning. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Campbell Soup Company Been A Good Investment?

Campbell Soup Company has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which is concerning) in Campbell Soup we think you should know about.

Switching gears from Campbell Soup, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.