Shareholders May Be More Conservative With Bowler Metcalf Limited's (JSE:BCF) CEO Compensation For Now

Key Insights

• Bowler Metcalf to hold its Annual General Meeting on 5th of November
• Salary of R4.09m is part of CEO Friedel Sass's total remuneration
• Total compensation is 121% above industry average
• Bowler Metcalf's EPS grew by 7.0% over the past three years while total shareholder return over the past three years was 55%

Under the guidance of CEO Friedel Sass, Bowler Metcalf Limited (JSE:BCF) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 5th of November. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Bowler Metcalf

Comparing Bowler Metcalf Limited's CEO Compensation With The Industry

Our data indicates that Bowler Metcalf Limited has a market capitalization of R873m, and total annual CEO compensation was reported as R4.7m for the year to June 2024. That's just a smallish increase of 6.4% on last year. Notably, the salary which is R4.09m, represents most of the total compensation being paid.

In comparison with other companies in the South Africa Chemicals industry with market capitalizations under R3.5b, the reported median total CEO compensation was R2.1m. Hence, we can conclude that Friedel Sass is remunerated higher than the industry median. What's more, Friedel Sass holds R249m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	R4.1m	R3.8m	86%
Other	R651k	R629k	14%
Total Compensation	R4.7m	R4.5m	100%

On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. According to our research, Bowler Metcalf has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Bowler Metcalf Limited's Growth Numbers

Over the past three years, Bowler Metcalf Limited has seen its earnings per share (EPS) grow by 7.0% per year. It achieved revenue growth of 20% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bowler Metcalf Limited Been A Good Investment?

Most shareholders would probably be pleased with Bowler Metcalf Limited for providing a total return of 55% 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Bowler Metcalf (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.