We Take A Look At Why Clientèle Limited's (JSE:CLI) CEO Has Earned Their Pay Packet

Key Insights

• Clientèle's Annual General Meeting to take place on 31st of October
• Salary of R8.37m is part of CEO Basil Reekie's total remuneration
• The overall pay is comparable to the industry average
• Clientèle's EPS grew by 14% over the past three years while total shareholder return over the past three years was 68%

We have been pretty impressed with the performance at Clientèle Limited (JSE:CLI) recently and CEO Basil Reekie deserves a mention for their role in it. Coming up to the next AGM on 31st of October, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Clientèle

Comparing Clientèle Limited's CEO Compensation With The Industry

According to our data, Clientèle Limited has a market capitalization of R3.7b, and paid its CEO total annual compensation worth R15m over the year to June 2023. That's a notable decrease of 37% on last year. Notably, the salary which is R8.37m, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the South African Insurance industry with market caps ranging from R1.9b to R7.6b, we found that the median CEO total compensation was R16m. From this we gather that Basil Reekie is paid around the median for CEOs in the industry. What's more, Basil Reekie holds R16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	R8.4m	R7.9m	55%
Other	R6.9m	R16m	45%
Total Compensation	R15m	R24m	100%

On an industry level, roughly 32% of total compensation represents salary and 68% is other remuneration. Clientèle pays out 55% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Clientèle Limited's Growth

Over the past three years, Clientèle Limited has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue is up 23%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Clientèle Limited Been A Good Investment?

Most shareholders would probably be pleased with Clientèle Limited for providing a total return of 68% 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Clientèle that investors should be aware of in a dynamic business environment.

Important note: Clientèle is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.