The performance at Premier Fishing & Brands Limited (JSE:PFB) has been rather lacklustre of late and shareholders may be wondering what CEO Rushaan Isaacs is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 23 February 2022. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.
Comparing Premier Fishing & Brands Limited's CEO Compensation With the industry
According to our data, Premier Fishing & Brands Limited has a market capitalization of R130m, and paid its CEO total annual compensation worth R2.8m over the year to August 2021. That's a notable increase of 52% on last year. Notably, the salary which is R2.05m, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under R3.0b, the reported median total CEO compensation was R6.2m. Accordingly, Premier Fishing & Brands pays its CEO under the industry median.
Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. It's interesting to note that Premier Fishing & Brands pays out a greater portion of remuneration through salary, compared to the 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 Premier Fishing & Brands Limited's Growth Numbers
Premier Fishing & Brands Limited has reduced its earnings per share by 111% a year over the last three years. In the last year, its revenue is up 27%.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Premier Fishing & Brands Limited Been A Good Investment?
Few Premier Fishing & Brands Limited shareholders would feel satisfied with the return of -83% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
The fact that shareholders have earned a negative share price return is certainly disconcerting. The downward trend in share price performance may be attributable to the the fact that earnings growth has gone backwards. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for Premier Fishing & Brands (2 are significant!) that you should be aware of before investing here.
Switching gears from Premier Fishing & Brands, 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.
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.