Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing Central Garden & Pet Company's (NASDAQ:CENT) CEO Pay Packet
CEO Tim Cofer has done a decent job of delivering relatively good performance at Central Garden & Pet Company (NASDAQ:CENT) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 07 February 2023. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Central Garden & Pet
Comparing Central Garden & Pet Company's CEO Compensation With The Industry
At the time of writing, our data shows that Central Garden & Pet Company has a market capitalization of US$2.2b, and reported total annual CEO compensation of US$6.6m for the year to September 2022. Notably, that's an increase of 32% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.
On comparing similar companies from the American Household Products industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$1.3m. Accordingly, our analysis reveals that Central Garden & Pet Company pays Tim Cofer north of the industry median. Furthermore, Tim Cofer directly owns US$3.5m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$1.0m | US$992k | 15% |
Other | US$5.6m | US$4.0m | 85% |
Total Compensation | US$6.6m | US$5.0m | 100% |
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Central Garden & Pet is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Central Garden & Pet Company's Growth Numbers
Central Garden & Pet Company's earnings per share (EPS) grew 20% per year over the last three years. Its revenue is up 1.1% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Central Garden & Pet Company Been A Good Investment?
With a total shareholder return of 30% over three years, Central Garden & Pet Company shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Central Garden & Pet 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.
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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.
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