Bid Corporation Limited's (JSE:BID) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• Bid's Annual General Meeting to take place on 31st of October
• Salary of R22.1m is part of CEO Bernard Berson's total remuneration
• The overall pay is comparable to the industry average
• Bid's EPS grew by 37% over the past three years while total shareholder return over the past three years was 41%

We have been pretty impressed with the performance at Bid Corporation Limited (JSE:BID) recently and CEO Bernard Berson deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 31st of October. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Bid

How Does Total Compensation For Bernard Berson Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bid Corporation Limited has a market capitalization of R144b, and reported total annual CEO compensation of R57m for the year to June 2024. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at R22m.

On examining similar-sized companies in the South African Consumer Retailing industry with market capitalizations between R71b and R212b, we discovered that the median CEO total compensation of that group was R45m. From this we gather that Bernard Berson is paid around the median for CEOs in the industry. Moreover, Bernard Berson also holds R295m worth of Bid 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	R22m	R21m	39%
Other	R35m	R36m	61%
Total Compensation	R57m	R57m	100%

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Bid sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Bid Corporation Limited's Growth

Bid Corporation Limited has seen its earnings per share (EPS) increase by 37% a year over the past three years. Its revenue is up 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Bid Corporation Limited Been A Good Investment?

Most shareholders would probably be pleased with Bid Corporation Limited for providing a total return of 41% 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 solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bid (free visualization of insider trades).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.