Key Insights

• Janus International Group will host its Annual General Meeting on 24th of June
• CEO Ramey Jackson's total compensation includes salary of US$866.5k
• Total compensation is similar to the industry average
• Over the past three years, Janus International Group's EPS grew by 8.8% and over the past three years, the total loss to shareholders 0.2%

In the past three years, shareholders of Janus International Group, Inc. (NYSE:JBI) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 24th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Comparing Janus International Group, Inc.'s CEO Compensation With The Industry

Our data indicates that Janus International Group, Inc. has a market capitalization of US$1.9b, and total annual CEO compensation was reported as US$4.8m for the year to December 2023. We note that's an increase of 32% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$867k.

For comparison, other companies in the American Building industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.5m. This suggests that Janus International Group remunerates its CEO largely in line with the industry average. What's more, Ramey Jackson holds US$12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. It's interesting to note that Janus International Group pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Janus International Group, Inc.'s Growth

Janus International Group, Inc. has seen its earnings per share (EPS) increase by 8.8% a year over the past three years. In the last year, its revenue is up 2.7%.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Janus International Group, Inc. Been A Good Investment?

Since shareholders would have lost about 0.2% over three years, some Janus International Group, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Janus International Group that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.

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