Here's Why Coronation Fund Managers Limited's (JSE:CML) CEO Compensation Is The Least Of Shareholders Concerns

Performance at Coronation Fund Managers Limited (JSE:CML) has been rather uninspiring recently and shareholders may be wondering how CEO Anton Pillay plans to fix this. At the next AGM coming up on 22 February 2023, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Coronation Fund Managers

How Does Total Compensation For Anton Pillay Compare With Other Companies In The Industry?

According to our data, Coronation Fund Managers Limited has a market capitalization of R11b, and paid its CEO total annual compensation worth R11m over the year to September 2022. We note that's a decrease of 23% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at R2.2m.

On comparing similar companies from the South Africa Capital Markets industry with market caps ranging from R7.2b to R29b, we found that the median CEO total compensation was R21m. This suggests that Anton Pillay is paid below the industry median. Moreover, Anton Pillay also holds R151m worth of Coronation Fund Managers stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	R2.2m	R2.1m	20%
Other	R8.8m	R12m	80%
Total Compensation	R11m	R14m	100%

Speaking on an industry level, nearly 39% of total compensation represents salary, while the remainder of 61% is other remuneration. It's interesting to note that Coronation Fund Managers allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Coronation Fund Managers Limited's Growth

Coronation Fund Managers Limited's earnings per share (EPS) grew 2.3% per year over the last three years. In the last year, its revenue is down 14%.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Coronation Fund Managers Limited Been A Good Investment?

Given the total shareholder loss of 5.5% over three years, many shareholders in Coronation Fund Managers Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Flat earnings growth may also be to blame for the uninspiring share price performance. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Coronation Fund Managers that investors should look into moving forward.

Switching gears from Coronation Fund Managers, 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.