Yahoo Finance Most Shareholders Will Probably Agree With Trellidor Holdings Limited's (JSE:TRL) CEO Compensation
Key Insights
Trellidor Holdings to hold its Annual General Meeting on 7th of December
CEO Terry Dennison's total compensation includes salary of R3.29m
Total compensation is similar to the industry average
Over the past three years, Trellidor Holdings' EPS grew by 27% and over the past three years, the total shareholder return was 22%
Performance at Trellidor Holdings Limited (JSE:TRL) has been reasonably good and CEO Terry Dennison has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 7th of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
See our latest analysis for Trellidor Holdings
Comparing Trellidor Holdings Limited's CEO Compensation With The Industry
According to our data, Trellidor Holdings Limited has a market capitalization of R224m, and paid its CEO total annual compensation worth R3.9m over the year to June 2023. Notably, that's a decrease of 23% over the year before. In particular, the salary of R3.29m, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the South Africa Building industry with market capitalizations below R3.8b, reported a median total CEO compensation of R3.5m. So it looks like Trellidor Holdings compensates Terry Dennison in line with the median for the industry. Furthermore, Terry Dennison directly owns R21m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | R3.3m | R3.3m | 84% |
Other | R603k | R1.8m | 16% |
Total Compensation | R3.9m | R5.1m | 100% |
On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. It's interesting to note that Trellidor Holdings pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Trellidor Holdings Limited's Growth
Trellidor Holdings Limited's earnings per share (EPS) grew 27% per year over the last three years. In the last year, its revenue is down 2.1%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Trellidor Holdings Limited Been A Good Investment?
Trellidor Holdings Limited has served shareholders reasonably well, with a total return of 22% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
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. We identified 4 warning signs for Trellidor Holdings (3 are a bit concerning!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
