Stadio Holdings Limited's (JSE:SDO) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Stadio Holdings will host its Annual General Meeting on 19th of June
• CEO Chris Vorster's total compensation includes salary of R4.52m
• Total compensation is 190% above industry average
• Over the past three years, Stadio Holdings' EPS grew by 27% and over the past three years, the total shareholder return was 176%

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Performance at Stadio Holdings Limited (JSE:SDO) has been reasonably good and CEO Chris Vorster has done a decent job of steering the company in the right direction. 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 want to keep CEO compensation within reason.

View 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 R7.3b, and paid its CEO total annual compensation worth R23m over the year to December 2024. Notably, that's an increase of 17% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at R4.5m.

For comparison, other companies in the South Africa Consumer Services industry with market capitalizations ranging between R3.6b and R14b had a median total CEO compensation of R8.0m. This suggests that Chris Vorster is paid more than the median for the industry. What's more, Chris Vorster holds R140m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. 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.

A Look at Stadio Holdings Limited's Growth Numbers

Stadio Holdings Limited has seen its earnings per share (EPS) increase by 27% a year over the past three years. It achieved revenue growth of 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing 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 Stadio Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Stadio Holdings Limited for providing a total return of 176% over three years. 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Stadio Holdings that investors should look into moving forward.

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.