Yahoo Finance Should Shareholders Reconsider Barfresh Food Group, Inc.'s (NASDAQ:BRFH) CEO Compensation Package?
Key Insights
Barfresh Food Group's Annual General Meeting to take place on 25th of June
Salary of US$375.0k is part of CEO Riccardo Delle Coste's total remuneration
The total compensation is similar to the average for the industry
Over the past three years, Barfresh Food Group's EPS fell by 8.5% and over the past three years, the total loss to shareholders 66%
Shareholders will probably not be too impressed with the underwhelming results at Barfresh Food Group, Inc. (NASDAQ:BRFH) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for Barfresh Food Group
How Does Total Compensation For Riccardo Delle Coste Compare With Other Companies In The Industry?
Our data indicates that Barfresh Food Group, Inc. has a market capitalization of US$43m, and total annual CEO compensation was reported as US$467k for the year to December 2023. Notably, that's a decrease of 9.6% over the year before. In particular, the salary of US$375.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the American Food industry with market capitalizations under US$200m, the reported median total CEO compensation was US$467k. From this we gather that Riccardo Delle Coste is paid around the median for CEOs in the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$375k | US$375k | 80% |
Other | US$92k | US$142k | 20% |
Total Compensation | US$467k | US$517k | 100% |
On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. Barfresh Food Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Barfresh Food Group, Inc.'s Growth Numbers
Over the last three years, Barfresh Food Group, Inc. has shrunk its earnings per share by 8.5% per year. Its revenue is up 1.6% over the last year.
Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Barfresh Food Group, Inc. Been A Good Investment?
With a total shareholder return of -66% over three years, Barfresh Food Group, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
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. That's why we did our research, and identified 5 warning signs for Barfresh Food Group (of which 2 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Important note: Barfresh Food Group 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
