Shareholders Will Probably Hold Off On Increasing Trellidor Holdings Limited's (JSE:TRL) CEO Compensation For The Time Being

Key Insights

• Trellidor Holdings to hold its Annual General Meeting on 4th of December
• Total pay for CEO Terry Dennison includes R3.44m salary
• The total compensation is 178% higher than the average for the industry
• Over the past three years, Trellidor Holdings' EPS grew by 277% and over the past three years, the total loss to shareholders 19%

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In the past three years, the share price of Trellidor Holdings Limited (JSE:TRL) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 4th of December. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Trellidor Holdings

How Does Total Compensation For Terry Dennison Compare With Other Companies In The Industry?

According to our data, Trellidor Holdings Limited has a market capitalization of R159m, and paid its CEO total annual compensation worth R4.9m over the year to June 2025. Notably, that's an increase of 20% over the year before. We note that the salary portion, which stands at R3.44m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the South Africa Building industry with market capitalizations below R3.4b, we found that the median total CEO compensation was R1.8m. This suggests that Terry Dennison is paid more than the median for the industry. Moreover, Terry Dennison also holds R15m worth of Trellidor Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. According to our research, Trellidor Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Trellidor Holdings Limited's Growth

Trellidor Holdings Limited's earnings per share (EPS) grew 277% per year over the last three years. It saw its revenue drop 8.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Trellidor Holdings Limited Been A Good Investment?

Since shareholders would have lost about 19% over three years, some Trellidor Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Trellidor Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.

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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.