Key Insights

• Bunge Global will host its Annual General Meeting on 15th of May
• Total pay for CEO Greg Heckman includes US$1.20m salary
• The overall pay is comparable to the industry average
• Bunge Global's EPS declined by 5.1% over the past three years while total shareholder return over the past three years was 28%

Despite positive share price growth of 28% for Bunge Global SA (NYSE:BG) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 15th of May may be an opportunity for shareholders to bring up any concerns they may have for the board's attention. 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.

How Does Total Compensation For Greg Heckman Compare With Other Companies In The Industry?

According to our data, Bunge Global SA has a market capitalization of US$15b, and paid its CEO total annual compensation worth US$18m over the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued 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$16m. So it looks like Bunge Global compensates Greg Heckman in line with the median for the industry. Moreover, Greg Heckman also holds US$63m worth of Bunge Global 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 21% of total compensation represents salary and 79% is other remuneration. Bunge Global sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Bunge Global SA's Growth Numbers

Over the last three years, Bunge Global SA has shrunk its earnings per share by 5.1% per year. In the last year, its revenue is down 14%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Bunge Global SA Been A Good Investment?

Bunge Global SA has served shareholders reasonably well, with a total return of 28% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about 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.

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 Bunge Global 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.