Unifi (NYSE:UFI), Inc., with a market capitalization of $120 million, is gearing up for its Annual General Meeting (AGM) on October 31st. The meeting comes at a time when shareholders are wrestling with a divergence between the company's Earnings Per Share (EPS) growth and shareholder returns.
Over the past three years, Unifi has seen its EPS grow by 21%. However, this growth contrasts sharply with a total shareholder loss of 56% during the same period. This disparity has raised eyebrows among shareholders, who are likely to scrutinize the situation at the upcoming AGM.
The company's revenue has mirrored the shareholder loss, dropping by 24% over the previous year. This revenue-EPS disparity adds another layer of complexity to Unifi's financial picture. The AGM will provide an opportunity for shareholders to delve into these issues and evaluate the board's judgement and decision-making.
At the center of these discussions will be CEO Eddie Ingle's compensation. For the year ending in July 2023, Ingle received a total compensation of $1.2 million. This figure represents a 23% decrease from last year and includes a salary of $775,000 along with other remuneration worth $470,000.
Ingle also owns $629,000 worth of Unifi stock directly. Interestingly, Unifi's compensation structure leans heavily towards salary, which is not typical for the industry. On average, only 24% of total compensation in American Luxury firms with market caps under $200m comes from salary, while the remaining 76% is other remuneration.
Despite the decrease in Ingle's compensation and his sizable stake in the company, questions remain about whether his pay aligns with Unifi's performance. These concerns will likely be a focal point at the forthcoming AGM.
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