Advertisement
New Zealand markets open in 8 hours 13 minutes
  • NZX 50

    11,590.47
    +19.25 (+0.17%)
     
  • NZD/USD

    0.6184
    +0.0018 (+0.29%)
     
  • ALL ORDS

    7,860.00
    -51.50 (-0.65%)
     
  • OIL

    76.83
    -0.21 (-0.27%)
     
  • GOLD

    2,039.90
    +0.10 (+0.00%)
     

Performance Food Group Company's (NYSE:PFGC) CEO Looks Due For A Compensation Raise

Key Insights

  • Performance Food Group's Annual General Meeting to take place on 30th of November

  • Total pay for CEO George Holm includes US$1.17m salary

  • The overall pay is 39% below the industry average

  • Over the past three years, Performance Food Group's EPS grew by 110% and over the past three years, the total shareholder return was 44%

The solid performance at Performance Food Group Company (NYSE:PFGC) has been impressive and shareholders will probably be pleased to know that CEO George Holm has delivered. At the upcoming AGM on 30th of November, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Performance Food Group

Comparing Performance Food Group Company's CEO Compensation With The Industry

According to our data, Performance Food Group Company has a market capitalization of US$9.8b, and paid its CEO total annual compensation worth US$9.5m over the year to July 2023. We note that's an increase of 9.5% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

On comparing similar companies in the American Consumer Retailing industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$16m. Accordingly, Performance Food Group pays its CEO under the industry median. Furthermore, George Holm directly owns US$142m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2023

2022

Proportion (2023)

Salary

US$1.2m

US$1.1m

12%

Other

US$8.3m

US$7.6m

88%

Total Compensation

US$9.5m

US$8.7m

100%

On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. Our data reveals that Performance Food Group allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

Performance Food Group Company's Growth

Over the past three years, Performance Food Group Company has seen its earnings per share (EPS) grow by 110% per year. It achieved revenue growth of 4.1% 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. 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 Performance Food Group Company Been A Good Investment?

We think that the total shareholder return of 44%, over three years, would leave most Performance Food Group Company shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Performance Food Group that investors should look into moving forward.

Switching gears from Performance Food Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.