Yahoo Finance We Think The Compensation For Trematon Capital Investments Limited's (JSE:TMT) CEO Looks About Right
Under the guidance of CEO Arnold Shapiro, Trematon Capital Investments Limited (JSE:TMT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25 January 2023. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for Trematon Capital Investments
How Does Total Compensation For Arnold Shapiro Compare With Other Companies In The Industry?
At the time of writing, our data shows that Trematon Capital Investments Limited has a market capitalization of R768m, and reported total annual CEO compensation of R3.6m for the year to August 2022. That's a fairly small increase of 4.2% over the previous year. Notably, the salary which is R3.26m, represents most of the total compensation being paid.
On comparing similar-sized companies in the South Africa Real Estate industry with market capitalizations below R3.4b, we found that the median total CEO compensation was R3.6m. This suggests that Trematon Capital Investments remunerates its CEO largely in line with the industry average. What's more, Arnold Shapiro holds R64m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | R3.3m | R3.1m | 91% |
Other | R308k | R320k | 9% |
Total Compensation | R3.6m | R3.4m | 100% |
On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Trematon Capital Investments is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Trematon Capital Investments Limited's Growth
Trematon Capital Investments Limited has reduced its earnings per share by 7.5% a year over the last three years. In the last year, its revenue is up 22%.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Trematon Capital Investments Limited Been A Good Investment?
We think that the total shareholder return of 66%, over three years, would leave most Trematon Capital Investments Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 6 warning signs (and 2 which are significant) in Trematon Capital Investments we think you should know about.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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