Key Insights

• Performance Food Group to hold its Annual General Meeting on 20th of November
• Total pay for CEO George Holm includes US$1.20m salary
• Total compensation is similar to the industry average
• Performance Food Group's EPS grew by 99% over the past three years while total shareholder return over the past three years was 91%

We have been pretty impressed with the performance at Performance Food Group Company (NYSE:PFGC) recently and CEO George Holm deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 20th of November. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

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$13b, and paid its CEO total annual compensation worth US$10m over the year to June 2024. We note that's an increase of 9.2% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

In comparison with other companies in the American Consumer Retailing industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$11m. From this we gather that George Holm is paid around the median for CEOs in the industry. Moreover, George Holm also holds US$192m worth of Performance Food Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. There isn't a significant difference between Performance Food Group and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Performance Food Group Company's Growth

Over the past three years, Performance Food Group Company has seen its earnings per share (EPS) grow by 99% per year. In the last year, its revenue is up 3.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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?

Boasting a total shareholder return of 91% over three years, Performance Food Group Company has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Performance Food Group that investors should think about before committing capital to this stock.

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.

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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.