We Think The Compensation For Premier Fishing & Brands Limited's (JSE:PFB) CEO Looks About Right

By
Simply Wall St
Published
February 17, 2022
JSE:PFB
Source: Shutterstock

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.

View our latest analysis for Premier Fishing & Brands

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.

Component20212020Proportion (2021)
Salary R2.0m R1.5m 72%
Other R779k R370k 28%
Total CompensationR2.8m R1.9m100%

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.

ceo-compensation
JSE:PFB CEO Compensation February 17th 2022

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.

In Summary...

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.