How Much Is Coronation Fund Managers' (JSE:CML) CEO Getting Paid?

This article will reflect on the compensation paid to Anton Pillay who has served as CEO of Coronation Fund Managers Limited (JSE:CML) since 2013. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View 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 R15b, and paid its CEO total annual compensation worth R12m over the year to September 2020. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at R2.0m.

On comparing similar companies from the same industry with market caps ranging from R5.8b to R23b, we found that the median CEO total compensation was R19m. In other words, Coronation Fund Managers pays its CEO lower than the industry median. Moreover, Anton Pillay also holds R200m 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.

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% 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. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Coronation Fund Managers Limited's Growth

Over the last three years, Coronation Fund Managers Limited has shrunk its earnings per share by 2.9% per year. It achieved revenue growth of 11% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

With a three year total loss of 24% for the shareholders, Coronation Fund Managers Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Anton is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. It's tough to say that Anton is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 2 which make us uncomfortable) in Coronation Fund Managers we think you should know about.

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. 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.
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