Posted: 05/19/2025 07:21 am
In the evolving landscape of agribusiness, Alico, Inc. (NASDAQ: ALCO) stands out not only for its robust operational performance but also for its distinctive executive compensation strategy. Amid its strategic shift towards becoming a diversified land company, an examination of the compensation trends for Alico's key executives offers insights into its leadership dynamics.
John E. Kiernan, Alico's President and CEO, demonstrates a unique compensation profile. In 2024, Kiernan's base salary, bonus, stock awards, and option awards were notably absent. Instead, his compensation was predominantly driven by incentive plan compensation amounting to $897,762, and other compensation totaling $40,012, resulting in a total remuneration of $1,576,769[1]. This emphasis on performance-based incentives aligns his interests directly with company performance and shareholder value, especially as Alico embarks on its strategic transformation.
The evolution in Kiernan’s compensation structure since 2020 further underscores the company’s adaptive compensation model. Prior to 2024, Kiernan's compensation in 2020 included a substantial salary and bonus, amounting to $360,000 and $241,500, respectively[2]. This shift towards performance incentives suggests a strong alignment with the company’s strategic priorities.
Notably, other executives at Alico have experienced different compensation trajectories. Danny Sutton, President of Citrus, received a consistent salary in both 2023 and 2022, but without substantial incentive plan compensation. His total compensation saw a modest decline from $393,480 in 2022 to $343,478 in 2023, driven largely by changes in bonus allocations[3]. In comparison, Richard Rallo, the Senior Vice President, saw a steady compensation pattern in 2021 focusing on a significant bonus[4].
These compensation strategies come amidst Alico's broader corporate developments. The company is strategically transforming by capitalizing more on land sales and completing its capital investments in citrus operations[5]. These moves are reflective of Alico's robust liquidity and growth potential, highlighted by increased revenue in land management operations[6].
Alico's emphasis on incentive-driven compensation for its top executives like Kiernan complements its current corporate narrative focused on performance transformation and diversification. This approach not only incentivizes leadership alignment with strategic objectives but also fortifies its position in the competitive agricultural sector. As Alico navigates its path forward, understanding its compensation framework offers a lens into how it prioritizes agile leadership and strategic value creation.
:
1. SEC filing data for John E. Kiernan from 2024 (https://www.sec.gov/Archives/edgar/data/3545/000000354525000018/0000003545-25-000018-index.htm).
2. SEC filing data for John E. Kiernan from 2020 (https://www.sec.gov/Archives/edgar/data/3545/000156459021001476/0001564590-21-001476-index.htm).
3. SEC filing data for Danny Sutton from 2022 and 2023 (https://www.sec.gov/Archives/edgar/data/3545/000095017023000793/0000950170-23-000793-index.htm, https://www.sec.gov/Archives/edgar/data/3545/000000354524000019/0000003545-24-000019-index.htm).
4. SEC filing data for Richard Rallo from 2021 (https://www.sec.gov/Archives/edgar/data/3545/000156459022001472/0001564590-22-001472-index.htm).
5. News on Alico's strategic transformations (https://www.globenewswire.com/news-release/2025/05/13/3080731/8911/en/Alico-Inc-Announces-Financial-Results-for-the-Second-Quarter-Ended-March-31-2025.html).
6. Press release regarding financial results for the first quarter ended December 31, 2024 (https://www.globenewswire.com/news-release/2025/01/27/3075051/8911/en/Alico-to-Participate-at-the-BMO-Global-Farm-to-Market-Conference.html).
