Shareholders May Not Be So Generous With Stadio Holdings Limited's (JSE:SDO) CEO Compensation And Here's Why

Key Insights

• Stadio Holdings to hold its Annual General Meeting on 19th of June
• Total pay for CEO Chris Vorster includes R4.49m salary
• Total compensation is 195% above industry average
• Over the past three years, Stadio Holdings' EPS grew by 68% and over the past three years, the total shareholder return was 53%

CEO Chris Vorster has done a decent job of delivering relatively good performance at Stadio Holdings Limited (JSE:SDO) recently. 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 19th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Stadio Holdings

How Does Total Compensation For Chris Vorster Compare With Other Companies In The Industry?

According to our data, Stadio Holdings Limited has a market capitalization of R4.0b, and paid its CEO total annual compensation worth R20m over the year to December 2023. We note that's an increase of 20% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at R4.5m.

On comparing similar companies from the South Africa Consumer Services industry with market caps ranging from R1.8b to R7.4b, we found that the median CEO total compensation was R6.7m. This suggests that Chris Vorster is paid more than the median for the industry. Moreover, Chris Vorster also holds R80m worth of Stadio Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	R4.5m	R4.0m	23%
Other	R15m	R12m	77%
Total Compensation	R20m	R16m	100%

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Stadio Holdings 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.

Stadio Holdings Limited's Growth

Stadio Holdings Limited's earnings per share (EPS) grew 68% per year over the last three years. Its revenue is up 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Stadio Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 53% over three years, Stadio Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

So you may want to check if insiders are buying Stadio Holdings shares with their own money (free access).

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.

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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.