Increases to CEO Compensation Might Be Put On Hold For Now at Argent Industrial Limited (JSE:ART)

Key Insights

• Argent Industrial's Annual General Meeting to take place on 18th of August
• Total pay for CEO Treve Hendry includes R4.08m salary
• The total compensation is 282% higher than the average for the industry
• Argent Industrial's total shareholder return over the past three years was 136% while its EPS grew by 15% over the past three years

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Under the guidance of CEO Treve Hendry, Argent Industrial Limited (JSE:ART) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 18th of August. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Argent Industrial

How Does Total Compensation For Treve Hendry Compare With Other Companies In The Industry?

According to our data, Argent Industrial Limited has a market capitalization of R1.5b, and paid its CEO total annual compensation worth R7.8m over the year to March 2025. We note that's a decrease of 12% compared to last year. In particular, the salary of R4.08m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the South Africa Building industry with market capitalizations under R3.5b, the reported median total CEO compensation was R2.0m. This suggests that Treve Hendry is paid more than the median for the industry. Furthermore, Treve Hendry directly owns R79m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. Our data reveals that Argent Industrial allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Argent Industrial Limited's Growth

Argent Industrial Limited's earnings per share (EPS) grew 15% per year over the last three years. Its revenue is up 3.6% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Argent Industrial Limited Been A Good Investment?

Boasting a total shareholder return of 136% over three years, Argent Industrial Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Argent Industrial that investors should look into moving forward.

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.

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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.