Why We Think The CEO Of Caxton and CTP Publishers and Printers Limited (JSE:CAT) May Soon See A Pay Rise

Key Insights

• Caxton and CTP Publishers and Printers to hold its Annual General Meeting on 5th of December
• Salary of R4.50m is part of CEO Terry Moolman's total remuneration
• The total compensation is 66% less than the average for the industry
• Caxton and CTP Publishers and Printers' EPS grew by 54% over the past three years while total shareholder return over the past three years was 172%

The impressive results at Caxton and CTP Publishers and Printers Limited (JSE:CAT) recently will be great news for shareholders. At the upcoming AGM on 5th of December, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

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

Our data indicates that Caxton and CTP Publishers and Printers Limited has a market capitalization of R4.0b, and total annual CEO compensation was reported as R4.5m for the year to June 2023. That's a fairly small increase of 4.0% over the previous year. It is worth noting that the CEO compensation consists entirely of the salary, worth R4.5m.

In comparison with other companies in the South Africa Media industry with market capitalizations ranging from R1.9b to R7.4b, the reported median CEO total compensation was R13m. This suggests that Terry Moolman is paid below the industry median. What's more, Terry Moolman holds R1.8b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 90% of total compensation out of all the companies we analyzed, while other remuneration made up 10% of the pie. 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 is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Caxton and CTP Publishers and Printers Limited's Growth

Caxton and CTP Publishers and Printers Limited's earnings per share (EPS) grew 54% per year over the last three years. In the last year, its revenue is up 17%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Caxton and CTP Publishers and Printers Limited Been A Good Investment?

We think that the total shareholder return of 172%, over three years, would leave most Caxton and CTP Publishers and Printers Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Caxton and CTP Publishers and Printers pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Caxton and CTP Publishers and Printers that investors should think about before committing capital to this stock.

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.