Shareholders May Not Be So Generous With Spur Corporation Ltd's (JSE:SUR) CEO Compensation And Here's Why

Key Insights

• Spur's Annual General Meeting to take place on 4th of December
• Total pay for CEO Val Nichas includes R6.26m salary
• Total compensation is 115% above industry average
• Over the past three years, Spur's EPS grew by 33% and over the past three years, the total shareholder return was 121%

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CEO Val Nichas has done a decent job of delivering relatively good performance at Spur Corporation Ltd (JSE:SUR) recently. As shareholders go into the upcoming AGM on 4th of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Spur

Comparing Spur Corporation Ltd's CEO Compensation With The Industry

According to our data, Spur Corporation Ltd has a market capitalization of R3.0b, and paid its CEO total annual compensation worth R21m over the year to June 2025. We note that's an increase of 84% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at R6.3m.

On examining similar-sized companies in the South Africa Hospitality industry with market capitalizations between R1.7b and R6.9b, we discovered that the median CEO total compensation of that group was R9.6m. Accordingly, our analysis reveals that Spur Corporation Ltd pays Val Nichas north of the industry median.

On an industry level, around 27% of total compensation represents salary and 73% is other remuneration. According to our research, Spur has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Spur Corporation Ltd's Growth

Over the past three years, Spur Corporation Ltd has seen its earnings per share (EPS) grow by 33% per year. Its revenue is up 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Spur Corporation Ltd Been A Good Investment?

Boasting a total shareholder return of 121% over three years, Spur Corporation Ltd has done well by shareholders. 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 decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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've identified 1 warning sign for Spur that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.