Why We Think The CEO Of Marshall Monteagle PLC (JSE:MMP) May Soon See A Pay Rise

Key Insights

• Marshall Monteagle to hold its Annual General Meeting on 15th of September
• Total pay for CEO Dave Marshall includes US$187.0k salary
• The overall pay is 34% below the industry average
• Marshall Monteagle's EPS grew by 43% over the past three years while total shareholder return over the past three years was 49%

The impressive results at Marshall Monteagle PLC (JSE:MMP) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 15th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Marshall Monteagle

How Does Total Compensation For Dave Marshall Compare With Other Companies In The Industry?

At the time of writing, our data shows that Marshall Monteagle PLC has a market capitalization of R918m, and reported total annual CEO compensation of US$250k for the year to March 2023. That's a notable decrease of 17% on last year. Notably, the salary which is US$187.0k, represents most of the total compensation being paid.

For comparison, other companies in the South Africa Trade Distributors industry with market capitalizations below R3.8b, reported a median total CEO compensation of US$381k. In other words, Marshall Monteagle pays its CEO lower than the industry median. What's more, Dave Marshall holds R23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$187k	US$300k	75%
Other	US$63k	US$1.1k	25%
Total Compensation	US$250k	US$301k	100%

On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that Marshall Monteagle pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Marshall Monteagle PLC's Growth Numbers

Marshall Monteagle PLC has seen its earnings per share (EPS) increase by 43% a year over the past three years. In the last year, its revenue is down 6.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Marshall Monteagle PLC Been A Good Investment?

Most shareholders would probably be pleased with Marshall Monteagle PLC for providing a total return of 49% 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 1 which is concerning) in Marshall Monteagle we think you should know about.

Important note: Marshall Monteagle 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.