Yahoo Finance This Is The Reason Why We Think Pilgrim's Pride Corporation's (NASDAQ:PPC) CEO Deserves A Bump Up To Their Compensation
Key Insights
Pilgrim's Pride will host its Annual General Meeting on 1st of May
Total pay for CEO Fabio Sandri includes US$942.3k salary
Total compensation is 60% below industry average
Pilgrim's Pride's EPS grew by 52% over the past three years while total shareholder return over the past three years was 48%
Shareholders will be pleased by the impressive results for Pilgrim's Pride Corporation (NASDAQ:PPC) recently and CEO Fabio Sandri has played a key role. This would be kept in mind at the upcoming AGM on 1st of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
See our latest analysis for Pilgrim's Pride
Comparing Pilgrim's Pride Corporation's CEO Compensation With The Industry
At the time of writing, our data shows that Pilgrim's Pride Corporation has a market capitalization of US$8.5b, and reported total annual CEO compensation of US$2.6m for the year to December 2023. Notably, that's a decrease of 14% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$942k.
On comparing similar companies from the American Food industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$6.4m. Accordingly, Pilgrim's Pride pays its CEO under the industry median. Moreover, Fabio Sandri also holds US$6.0m worth of Pilgrim's Pride stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$942k | US$900k | 37% |
Other | US$1.6m | US$2.1m | 63% |
Total Compensation | US$2.6m | US$3.0m | 100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. Pilgrim's Pride pays out 37% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Pilgrim's Pride Corporation's Growth
Over the past three years, Pilgrim's Pride Corporation has seen its earnings per share (EPS) grow by 52% per year. Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Pilgrim's Pride Corporation Been A Good Investment?
Most shareholders would probably be pleased with Pilgrim's Pride Corporation for providing a total return of 48% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Pilgrim's Pride that investors should be aware of in a dynamic business environment.
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.
