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

Key Insights

• eMedia Holdings will host its Annual General Meeting on 29th of August
• Salary of R7.05m is part of CEO Mahomed Khalik Sherrif's total remuneration
• The overall pay is 290% above the industry average
• Over the past three years, eMedia Holdings' EPS grew by 30% and over the past three years, the total shareholder return was 57%

CEO Mahomed Khalik Sherrif has done a decent job of delivering relatively good performance at eMedia Holdings Limited (JSE:EMH) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of August. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for eMedia Holdings

How Does Total Compensation For Mahomed Khalik Sherrif Compare With Other Companies In The Industry?

According to our data, eMedia Holdings Limited has a market capitalization of R1.4b, and paid its CEO total annual compensation worth R20m over the year to March 2024. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at R7.0m.

On comparing similar-sized companies in the South Africa Media industry with market capitalizations below R3.6b, we found that the median total CEO compensation was R5.1m. This suggests that Mahomed Khalik Sherrif is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	R7.0m	R6.4m	36%
Other	R13m	R14m	64%
Total Compensation	R20m	R20m	100%

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. In eMedia Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

eMedia Holdings Limited's Growth

eMedia Holdings Limited's earnings per share (EPS) grew 30% per year over the last three years. Its revenue is down 2.1% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has eMedia Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with eMedia Holdings Limited for providing a total return of 57% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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, 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for eMedia Holdings that investors should be aware of in a dynamic business environment.

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.

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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.