Yahoo Finance Does Conagra Brands, Inc.'s (NYSE:CAG) CEO Pay Compare Well With Peers?
Sean Connolly has been the CEO of Conagra Brands, Inc. (NYSE:CAG) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Conagra Brands
How Does Sean Connolly's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Conagra Brands, Inc. has a market cap of US$15b, and reported total annual CEO compensation of US$14m for the year to May 2019. Notably, that's an increase of 37% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$1.2m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Sean Connolly receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Conagra Brands has changed from year to year.
Is Conagra Brands, Inc. Growing?
On average over the last three years, Conagra Brands, Inc. has grown earnings per share (EPS) by 32% each year (using a line of best fit). It achieved revenue growth of 27% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Conagra Brands, Inc. Been A Good Investment?
Given the total loss of 11% over three years, many shareholders in Conagra Brands, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Sean Connolly is paid around the same as most CEOs of large companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Conagra Brands (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
