The Bidvest Group Limited's (JSE:BVT) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Bidvest Group's Annual General Meeting to take place on 29th of November
• Salary of R12.8m is part of CEO Mpumi Madisa's total remuneration
• Total compensation is 30% above industry average
• Bidvest Group's EPS grew by 18% over the past three years while total shareholder return over the past three years was 69%

Under the guidance of CEO Mpumi Madisa, The Bidvest Group Limited (JSE:BVT) 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 29th of November. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Bidvest Group

How Does Total Compensation For Mpumi Madisa Compare With Other Companies In The Industry?

Our data indicates that The Bidvest Group Limited has a market capitalization of R96b, and total annual CEO compensation was reported as R67m for the year to June 2024. That's a notable increase of 48% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at R13m.

On examining similar-sized companies in the South Africa Industrials industry with market capitalizations between R72b and R217b, we discovered that the median CEO total compensation of that group was R51m. Accordingly, our analysis reveals that The Bidvest Group Limited pays Mpumi Madisa north of the industry median. Moreover, Mpumi Madisa also holds R58m worth of Bidvest Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	R13m	R12m	19%
Other	R54m	R33m	81%
Total Compensation	R67m	R45m	100%

Speaking on an industry level, nearly 37% of total compensation represents salary, while the remainder of 63% is other remuneration. Bidvest Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at The Bidvest Group Limited's Growth Numbers

Over the past three years, The Bidvest Group Limited has seen its earnings per share (EPS) grow by 18% per year. Its revenue is up 6.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 The Bidvest Group Limited Been A Good Investment?

Most shareholders would probably be pleased with The Bidvest Group Limited for providing a total return of 69% over three years. 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Bidvest Group that investors should be aware of in a dynamic business environment.

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.