Caxton and CTP Publishers and Printers Limited's (JSE:CAT) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Caxton and CTP Publishers and Printers' Annual General Meeting to take place on 3rd of December
• Salary of R4.50m is part of CEO Terry Moolman's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Caxton and CTP Publishers and Printers' EPS grew by 7.3% and over the past three years, the total shareholder return was 65%

Performance at Caxton and CTP Publishers and Printers Limited (JSE:CAT) has been reasonably good and CEO Terry Moolman has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 3rd of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Caxton and CTP Publishers and Printers

Comparing Caxton and CTP Publishers and Printers Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Caxton and CTP Publishers and Printers Limited has a market capitalization of R4.5b, and reported total annual CEO compensation of R4.5m for the year to June 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary of R4.5m is the entirety of the CEO compensation.

For comparison, other companies in the South Africa Media industry with market capitalizations ranging between R1.8b and R7.3b had a median total CEO compensation of R6.3m. So it looks like Caxton and CTP Publishers and Printers compensates Terry Moolman in line with the median for the industry. Moreover, Terry Moolman also holds R2.1b worth of Caxton and CTP Publishers and Printers stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	R4.5m	R4.5m	100%
Other	-	-	-
Total Compensation	R4.5m	R4.5m	100%

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Speaking on a company level, Caxton and CTP Publishers and Printers prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Caxton and CTP Publishers and Printers Limited's Growth Numbers

Caxton and CTP Publishers and Printers Limited's earnings per share (EPS) grew 7.3% per year over the last three years. It saw its revenue drop 4.7% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Caxton and CTP Publishers and Printers Limited Been A Good Investment?

Most shareholders would probably be pleased with Caxton and CTP Publishers and Printers Limited for providing a total return of 65% 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...

Caxton and CTP Publishers and Printers pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Caxton and CTP Publishers and Printers that investors should be aware of in a dynamic business environment.

Important note: Caxton and CTP Publishers and Printers 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.