Here's Why Remgro Limited's (JSE:REM) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Remgro to hold its Annual General Meeting on 27th of November
• CEO Jannie Durand's total compensation includes salary of R14.3m
• The total compensation is 64% less than the average for the industry
• Over the past three years, Remgro's EPS fell by 35% and over the past three years, the total shareholder return was 35%

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Shareholders may be wondering what CEO Jannie Durand plans to do to improve the less than great performance at Remgro Limited (JSE:REM) recently. At the next AGM coming up on 27th of November, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Remgro

How Does Total Compensation For Jannie Durand Compare With Other Companies In The Industry?

According to our data, Remgro Limited has a market capitalization of R98b, and paid its CEO total annual compensation worth R19m over the year to June 2025. That's a notable increase of 8.2% on last year. We note that the salary portion, which stands at R14.3m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the South Africa Diversified Financial industry with market capitalizations ranging between R69b and R207b had a median total CEO compensation of R53m. Accordingly, Remgro pays its CEO under the industry median. Furthermore, Jannie Durand directly owns R173m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. Remgro is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Remgro Limited's Growth Numbers

Remgro Limited has reduced its earnings per share by 35% a year over the last three years. It achieved revenue growth of 2.1% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Remgro Limited Been A Good Investment?

Most shareholders would probably be pleased with Remgro Limited for providing a total return of 35% 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.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean these strong returns may not continue. These are are some concerns that shareholders may want to address the board when they revisit their investment thesis.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Remgro that investors should think about before committing capital to this stock.

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.