Southern Sun Limited's (JSE:SSU) CEO Looks Due For A Compensation Raise

Key Insights

• Southern Sun will host its Annual General Meeting on 20th of September
• CEO Marcel von Aulock's total compensation includes salary of R7.68m
• The overall pay is 35% below the industry average
• Southern Sun's total shareholder return over the past three years was 151% while its EPS grew by 94% over the past three years

The impressive results at Southern Sun Limited (JSE:SSU) recently will be great news for shareholders. At the upcoming AGM on 20th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for Southern Sun

How Does Total Compensation For Marcel von Aulock Compare With Other Companies In The Industry?

According to our data, Southern Sun Limited has a market capitalization of R6.1b, and paid its CEO total annual compensation worth R10.0m over the year to March 2023. Notably, that's an increase of 55% over the year before. We note that the salary portion, which stands at R7.68m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the South Africa Hospitality industry with market caps ranging from R3.8b to R15b, we found that the median CEO total compensation was R15m. This suggests that Marcel von Aulock is paid below the industry median. Furthermore, Marcel von Aulock directly owns R29m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	R7.7m	R6.2m	77%
Other	R2.3m	R258k	23%
Total Compensation	R10.0m	R6.5m	100%

On an industry level, roughly 39% of total compensation represents salary and 61% is other remuneration. Southern Sun pays out 77% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Southern Sun Limited's Growth

Over the past three years, Southern Sun Limited has seen its earnings per share (EPS) grow by 94% per year. It achieved revenue growth of 96% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 Southern Sun Limited Been A Good Investment?

Boasting a total shareholder return of 151% over three years, Southern Sun Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

Shareholders may want to check for free if Southern Sun insiders are buying or selling shares.

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.