Key Insights

• Bunge Global will host its Annual General Meeting on 15th of May

• Salary of US$1.20m is part of CEO Greg Heckman's total remuneration

• The total compensation is similar to the average for the industry

• Over the past three years, Bunge Global's EPS fell by 5.1% and over the past three years, the total shareholder return 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. Some of these issues will occupy shareholders' minds as the AGM rolls around on 15th of May. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Bunge Global

Comparing Bunge Global SA's CEO Compensation With 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. We think total compensation is more important but our data shows that the CEO salary is lower, 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. Furthermore, Greg Heckman directly owns US$63m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 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.

Bunge Global SA's Growth

Bunge Global SA has reduced its earnings per share by 5.1% a year over the last three years. 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bunge Global SA Been A Good Investment?

With a total shareholder return of 28% over three years, Bunge Global SA shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Bunge Global that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.