Key Insights

• Unifi will host its Annual General Meeting on 31st of October
• Salary of US$775.0k is part of CEO Eddie Ingle's total remuneration
• The total compensation is similar to the average for the industry
• Unifi's EPS grew by 21% over the past three years while total shareholder loss over the past three years was 56%

The underwhelming share price performance of Unifi, Inc. (NYSE:UFI) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 31st of October could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Unifi

How Does Total Compensation For Eddie Ingle Compare With Other Companies In The Industry?

Our data indicates that Unifi, Inc. has a market capitalization of US$120m, and total annual CEO compensation was reported as US$1.2m for the year to July 2023. That's a notable decrease of 23% on last year. In particular, the salary of US$775.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the American Luxury industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.1m. From this we gather that Eddie Ingle is paid around the median for CEOs in the industry. Moreover, Eddie Ingle also holds US$629k worth of Unifi stock directly under their own name.

Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. Unifi is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 Unifi, Inc.'s Growth Numbers

Unifi, Inc.'s earnings per share (EPS) grew 21% per year over the last three years. It saw its revenue drop 24% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Unifi, Inc. Been A Good Investment?

The return of -56% over three years would not have pleased Unifi, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Unifi (free visualization of insider trades).

Switching gears from Unifi, 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.