We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Finbond Group Limited's (JSE:FGL) CEO For Now

Key Insights

• Finbond Group's Annual General Meeting to take place on 24th of October
• CEO Willie Van Aardt's total compensation includes salary of R27.4m
• The overall pay is 3,461% above the industry average
• Finbond Group's EPS grew by 85% over the past three years while total shareholder return over the past three years was 294%

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Under the guidance of CEO Willie Van Aardt, Finbond Group Limited (JSE:FGL) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of October. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Finbond Group

Comparing Finbond Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Finbond Group Limited has a market capitalization of R475m, and reported total annual CEO compensation of R53m for the year to February 2025. We note that's an increase of 18% above last year. We note that the salary of R27.4m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the South Africa Consumer Finance industry with market capitalizations under R3.5b, the reported median total CEO compensation was R1.5m. Accordingly, our analysis reveals that Finbond Group Limited pays Willie Van Aardt north of the industry median.

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. There isn't a significant difference between Finbond Group and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Finbond Group Limited's Growth Numbers

Finbond Group Limited's earnings per share (EPS) grew 85% per year over the last three years. In the last year, its revenue is up 8.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Finbond Group Limited Been A Good Investment?

Most shareholders would probably be pleased with Finbond Group Limited for providing a total return of 294% over three years. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Finbond Group (2 are potentially serious!) that you should be aware of before investing here.

Switching gears from Finbond Group, 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.