It's Unlikely That Shareholders Will Increase Coronation Fund Managers Limited's (JSE:CML) Compensation By Much This Year

Key Insights

• Coronation Fund Managers will host its Annual General Meeting on 18th of February
• CEO Anton Pillay's total compensation includes salary of R6.42m
• The overall pay is comparable to the industry average
• Coronation Fund Managers' total shareholder return over the past three years was 1.9% while its EPS grew by 5.3% over the past three years

Performance at Coronation Fund Managers Limited (JSE:CML) has been reasonably good and CEO Anton Pillay has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 18th of February, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Coronation Fund Managers

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

Our data indicates that Coronation Fund Managers Limited has a market capitalization of R14b, and total annual CEO compensation was reported as R13m for the year to September 2024. That's a notable increase of 47% on last year. In particular, the salary of R6.42m, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the South Africa Capital Markets industry with market caps ranging from R7.4b to R30b, we found that the median CEO total compensation was R18m. So it looks like Coronation Fund Managers compensates Anton Pillay in line with the median for the industry. What's more, Anton Pillay holds R193m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	R6.4m	R6.0m	51%
Other	R6.3m	R2.7m	49%
Total Compensation	R13m	R8.7m	100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. Coronation Fund Managers pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Coronation Fund Managers Limited's Growth Numbers

Coronation Fund Managers Limited has seen its earnings per share (EPS) increase by 5.3% a year over the past three years. Its revenue is up 7.3% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 total shareholder return of 1.9% over three years, Coronation Fund Managers Limited has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Coronation Fund Managers (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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.