Yahoo Finance J.Jill, Inc.'s (NYSE:JILL) CEO Looks Like They Deserve Their Pay Packet
Key Insights
J.Jill will host its Annual General Meeting on 6th of June
Total pay for CEO Claire Spofford includes US$968.4k salary
The overall pay is comparable to the industry average
J.Jill's total shareholder return over the past three years was 90% while its EPS grew by 116% over the past three years
It would be hard to discount the role that CEO Claire Spofford has played in delivering the impressive results at J.Jill, Inc. (NYSE:JILL) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 6th of June. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for J.Jill
How Does Total Compensation For Claire Spofford Compare With Other Companies In The Industry?
At the time of writing, our data shows that J.Jill, Inc. has a market capitalization of US$365m, and reported total annual CEO compensation of US$3.2m for the year to February 2024. We note that's a decrease of 18% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$968k.
In comparison with other companies in the American Specialty Retail industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$3.1m. So it looks like J.Jill compensates Claire Spofford in line with the median for the industry. What's more, Claire Spofford holds US$5.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$968k | US$923k | 31% |
Other | US$2.2m | US$2.9m | 69% |
Total Compensation | US$3.2m | US$3.8m | 100% |
On an industry level, roughly 17% of total compensation represents salary and 83% is other remuneration. It's interesting to note that J.Jill pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at J.Jill, Inc.'s Growth Numbers
J.Jill, Inc. has seen its earnings per share (EPS) increase by 116% a year over the past three years. Its revenue is down 1.6% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has J.Jill, Inc. Been A Good Investment?
We think that the total shareholder return of 90%, over three years, would leave most J.Jill, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for J.Jill that investors should be aware of in a dynamic business environment.
Important note: J.Jill 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.
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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.
