We Think Shareholders Are Less Likely To Approve A Pay Rise For J&J Snack Foods Corp.'s (NASDAQ:JJSF) CEO For Now
Key Insights
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J&J Snack Foods' Annual General Meeting to take place on 13th of February
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Total pay for CEO Dan Fachner includes US$936.5k salary
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The total compensation is similar to the average for the industry
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J&J Snack Foods' EPS grew by 195% over the past three years while total shareholder loss over the past three years was 4.2%
In the past three years, the share price of J&J Snack Foods Corp. (NASDAQ:JJSF) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 13th of February. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for J&J Snack Foods
Comparing J&J Snack Foods Corp.'s CEO Compensation With The Industry
At the time of writing, our data shows that J&J Snack Foods Corp. has a market capitalization of US$2.8b, and reported total annual CEO compensation of US$4.6m for the year to September 2023. We note that's an increase of 50% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$937k.
For comparison, other companies in the American Food industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$5.0m. So it looks like J&J Snack Foods compensates Dan Fachner in line with the median for the industry. What's more, Dan Fachner holds US$3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | US$937k | US$896k | 20% |
| Other | US$3.6m | US$2.2m | 80% |
| Total Compensation | US$4.6m | US$3.0m | 100% |
Speaking on an industry level, nearly 28% of total compensation represents salary, while the remainder of 72% is other remuneration. It's interesting to note that J&J Snack Foods allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at J&J Snack Foods Corp.'s Growth Numbers
Over the past three years, J&J Snack Foods Corp. has seen its earnings per share (EPS) grow by 195% per year. In the last year, its revenue is up 9.8%.
