Yahoo Finance Shareholders May Not Be So Generous With Aspen Pharmacare Holdings Limited's (JSE:APN) CEO Compensation And Here's Why
Key Insights
Aspen Pharmacare Holdings' Annual General Meeting to take place on 7th of December
Salary of R9.17m is part of CEO Stephen Saad's total remuneration
The overall pay is 148% above the industry average
Over the past three years, Aspen Pharmacare Holdings' EPS grew by 17% and over the past three years, the total shareholder return was 57%
Under the guidance of CEO Stephen Saad, Aspen Pharmacare Holdings Limited (JSE:APN) 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 7th of December. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for Aspen Pharmacare Holdings
Comparing Aspen Pharmacare Holdings Limited's CEO Compensation With The Industry
Our data indicates that Aspen Pharmacare Holdings Limited has a market capitalization of R82b, and total annual CEO compensation was reported as R24m for the year to June 2023. That's a modest increase of 3.4% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at R9.2m.
On examining similar-sized companies in the South Africa Pharmaceuticals industry with market capitalizations between R38b and R121b, we discovered that the median CEO total compensation of that group was R9.8m. Accordingly, our analysis reveals that Aspen Pharmacare Holdings Limited pays Stephen Saad north of the industry median. Moreover, Stephen Saad also holds R11b worth of Aspen Pharmacare Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | R9.2m | R8.7m | 38% |
Other | R15m | R15m | 62% |
Total Compensation | R24m | R23m | 100% |
Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. In Aspen Pharmacare Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Aspen Pharmacare Holdings Limited's Growth
Over the past three years, Aspen Pharmacare Holdings Limited has seen its earnings per share (EPS) grow by 17% per year. Its revenue is up 5.4% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Aspen Pharmacare Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 57% over three years, Aspen Pharmacare Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Aspen Pharmacare Holdings (free visualization of insider trades).
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.
