Increases to CEO Compensation Might Be Put On Hold For Now at Invicta Holdings Limited (JSE:IVT)

Key Insights

• Invicta Holdings to hold its Annual General Meeting on 13th of September
• Salary of R6.83m is part of CEO Steven Joffe's total remuneration
• Total compensation is 124% above industry average
• Invicta Holdings' EPS grew by 96% over the past three years while total shareholder return over the past three years was 139%

Performance at Invicta Holdings Limited (JSE:IVT) has been reasonably good and CEO Steven Joffe has done a decent job of steering the company in the right direction. 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 13th of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Invicta Holdings

Comparing Invicta Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Invicta Holdings Limited has a market capitalization of R2.6b, and reported total annual CEO compensation of R16m for the year to March 2023. That's a notable increase of 11% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at R6.8m.

For comparison, other companies in the South Africa Trade Distributors industry with market capitalizations below R3.8b, reported a median total CEO compensation of R7.3m. This suggests that Steven Joffe is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	R6.8m	R6.5m	42%
Other	R9.4m	R8.2m	58%
Total Compensation	R16m	R15m	100%

Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. Invicta Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Invicta Holdings Limited's Growth

Invicta Holdings Limited has seen its earnings per share (EPS) increase by 96% a year over the past three years. It achieved revenue growth of 8.1% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Invicta Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Invicta Holdings Limited for providing a total return of 139% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Invicta Holdings shares (free trial).

Important note: Invicta Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.