It's Unlikely That York Timber Holdings Limited's (JSE:YRK) CEO Will See A Huge Pay Rise This Year

Key Insights

• York Timber Holdings to hold its Annual General Meeting on 4th of November
• CEO Gerald C. Stoltz's total compensation includes salary of R3.92m
• Total compensation is 74% above industry average
• Over the past three years, York Timber Holdings' EPS grew by 8.7% and over the past three years, the total loss to shareholders 7.4%

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As many shareholders of York Timber Holdings Limited (JSE:YRK) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 4th of November. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for York Timber Holdings

Comparing York Timber Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that York Timber Holdings Limited has a market capitalization of R1.0b, and reported total annual CEO compensation of R4.4m for the year to June 2025. Notably, that's an increase of 9.1% over the year before. In particular, the salary of R3.92m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the South Africa Forestry industry with market capitalizations under R3.4b, the reported median total CEO compensation was R2.5m. Accordingly, our analysis reveals that York Timber Holdings Limited pays Gerald C. Stoltz north of the industry median. Furthermore, Gerald C. Stoltz directly owns R2.2m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. York Timber Holdings pays out 88% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at York Timber Holdings Limited's Growth Numbers

Over the past three years, York Timber Holdings Limited has seen its earnings per share (EPS) grow by 8.7% per year. It achieved revenue growth of 14% over the last year.

We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has York Timber Holdings Limited Been A Good Investment?

With a three year total loss of 7.4% for the shareholders, York Timber Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for York Timber Holdings that investors should look into moving forward.

Switching gears from York Timber Holdings, 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. 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.