Key Insights

• Campbell Soup to hold its Annual General Meeting on 19th of November
• Salary of US$1.25m is part of CEO Mark Clouse's total remuneration
• Total compensation is similar to the industry average
• Campbell Soup's EPS declined by 17% over the past three years while total shareholder return over the past three years was 18%

The share price of Campbell Soup Company (NASDAQ:CPB) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 19th of November. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Comparing Campbell Soup Company's CEO Compensation With The Industry

According to our data, Campbell Soup Company has a market capitalization of US$13b, and paid its CEO total annual compensation worth US$12m over the year to July 2024. That's a fairly small increase of 4.8% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

On comparing similar companies in the American Food industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$13m. So it looks like Campbell Soup compensates Mark Clouse in line with the median for the industry. Moreover, Mark Clouse also holds US$21m worth of Campbell Soup stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that Campbell Soup allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Campbell Soup Company's Growth

Over the last three years, Campbell Soup Company has shrunk its earnings per share by 17% per year. Its revenue is up 3.0% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Campbell Soup Company Been A Good Investment?

Campbell Soup Company has served shareholders reasonably well, with a total return of 18% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company.

Important note: Campbell Soup is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.