Most Shareholders Will Probably Agree With City Lodge Hotels Limited's (JSE:CLH) CEO Compensation
Key Insights
- City Lodge Hotels to hold its Annual General Meeting on 20th of November
- Total pay for CEO Andrew Widegger includes R6.58m salary
- The overall pay is comparable to the industry average
- City Lodge Hotels' total shareholder return over the past three years was 9.5% while its EPS grew by 40% over the past three years
Performance at City Lodge Hotels Limited (JSE:CLH) has been reasonably good and CEO Andrew Widegger has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 20th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for City Lodge Hotels
How Does Total Compensation For Andrew Widegger Compare With Other Companies In The Industry?
According to our data, City Lodge Hotels Limited has a market capitalization of R2.5b, and paid its CEO total annual compensation worth R8.5m over the year to June 2025. Notably, that's a decrease of 17% over the year before. We note that the salary portion, which stands at R6.58m constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the South Africa Hospitality industry with market capitalizations under R3.4b, the reported median total CEO compensation was R8.9m. So it looks like City Lodge Hotels compensates Andrew Widegger in line with the median for the industry. What's more, Andrew Widegger holds R16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | R6.6m | R6.2m | 77% |
| Other | R1.9m | R4.1m | 23% |
| Total Compensation | R8.5m | R10m | 100% |
Speaking on an industry level, nearly 30% of total compensation represents salary, while the remainder of 70% is other remuneration. According to our research, City Lodge Hotels has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
City Lodge Hotels Limited's Growth
Over the past three years, City Lodge Hotels Limited has seen its earnings per share (EPS) grow by 40% per year. In the last year, its revenue is up 6.4%.
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. 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 City Lodge Hotels Limited Been A Good Investment?
With a total shareholder return of 9.5% over three years, City Lodge Hotels Limited has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for City Lodge Hotels that investors should be aware of in a dynamic business environment.
Switching gears from City Lodge Hotels, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.