Brimstone Investment Corporation Limited's (JSE:BRT) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Brimstone Investment to hold its Annual General Meeting on 27th of May
• Salary of R3.95m is part of CEO Mustaq Enus-Brey's total remuneration
• The total compensation is 40% higher than the average for the industry
• Over the past three years, Brimstone Investment's EPS fell by 81% and over the past three years, the total loss to shareholders 15%

Our free stock report includes 3 warning signs investors should be aware of before investing in Brimstone Investment. Read for free now.

Brimstone Investment Corporation Limited (JSE:BRT) has not performed well recently and CEO Mustaq Enus-Brey will probably need to up their game. At the upcoming AGM on 27th of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Brimstone Investment

How Does Total Compensation For Mustaq Enus-Brey Compare With Other Companies In The Industry?

According to our data, Brimstone Investment Corporation Limited has a market capitalization of R1.0b, and paid its CEO total annual compensation worth R10m over the year to December 2024. This was the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at R4.0m.

For comparison, other companies in the South African Food industry with market capitalizations below R3.6b, reported a median total CEO compensation of R7.3m. Accordingly, our analysis reveals that Brimstone Investment Corporation Limited pays Mustaq Enus-Brey north of the industry median. Moreover, Mustaq Enus-Brey also holds R130m worth of Brimstone Investment stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	R4.0m	R4.0m	39%
Other	R6.3m	R6.3m	61%
Total Compensation	R10m	R10m	100%

Talking in terms of the industry, salary represented approximately 41% of total compensation out of all the companies we analyzed, while other remuneration made up 59% of the pie. Although there is a difference in how total compensation is set, Brimstone Investment more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Brimstone Investment Corporation Limited's Growth

Brimstone Investment Corporation Limited has reduced its earnings per share by 81% a year over the last three years. Its revenue is down 66% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Brimstone Investment Corporation Limited Been A Good Investment?

Since shareholders would have lost about 15% over three years, some Brimstone Investment Corporation Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Brimstone Investment you should be aware of, and 2 of them make us uncomfortable.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.