Imraan Soomra has been the CEO of Oceana Group Limited (JSE:OCE) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Oceana Group.
Check out our latest analysis for Oceana Group
How Does Total Compensation For Imraan Soomra Compare With Other Companies In The Industry?
Our data indicates that Oceana Group Limited has a market capitalization of R8.0b, and total annual CEO compensation was reported as R15m for the year to September 2020. We note that's an increase of 45% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at R6.2m.
On comparing similar companies from the same industry with market caps ranging from R3.0b to R12b, we found that the median CEO total compensation was R12m. This suggests that Oceana Group remunerates its CEO largely in line with the industry average. Furthermore, Imraan Soomra directly owns R15m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | R6.2m | R6.0m | 42% |
| Other | R8.5m | R4.1m | 58% |
| Total Compensation | R15m | R10m | 100% |
Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. It's interesting to note that Oceana Group 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.
A Look at Oceana Group Limited's Growth Numbers
Oceana Group Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. In the last year, its revenue is up 8.6%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Oceana Group Limited Been A Good Investment?
Given the total shareholder loss of 11% over three years, many shareholders in Oceana Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we noted earlier, Oceana Group pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Imraan is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Oceana Group that you should be aware of before investing.
Switching gears from Oceana 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. 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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About JSE:OCE
Oceana Group
Operates as a fishing company in South Africa, Namibia, rest of Africa, North America, Europe, the Far East, and internationally.
Flawless balance sheet with solid track record.
