Yahoo Finance Does Cooks Global Foods' (NZSE:CGF) CEO Salary Compare Well With The Performance Of The Company?
Graeme Jackson is the CEO of Cooks Global Foods Limited (NZSE:CGF), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Cooks Global Foods
How Does Total Compensation For Graeme Jackson Compare With Other Companies In The Industry?
Our data indicates that Cooks Global Foods Limited has a market capitalization of NZ$31m, and total annual CEO compensation was reported as NZ$180k for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary of NZ$180k is the entirety of the CEO compensation.
In comparison with other companies in the industry with market capitalizations under NZ$299m, the reported median total CEO compensation was NZ$201k. So it looks like Cooks Global Foods compensates Graeme Jackson in line with the median for the industry. What's more, Graeme Jackson holds NZ$2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | NZ$180k | NZ$180k | 100% |
Other | - | - | - |
Total Compensation | NZ$180k | NZ$180k | 100% |
On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. Speaking on a company level, Cooks Global Foods prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Cooks Global Foods Limited's Growth Numbers
Cooks Global Foods Limited has reduced its earnings per share by 13% a year over the last three years. It achieved revenue growth of 1.3% over the last year.
The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Cooks Global Foods Limited Been A Good Investment?
With a three year total loss of 37% for the shareholders, Cooks Global Foods Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Cooks Global Foods rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Cooks Global Foods Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Cooks Global Foods that you should be aware of before investing.
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.
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. 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.
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