We Discuss Why Aspen Pharmacare Holdings Limited's (JSE:APN) CEO Compensation May Be Closely Reviewed

Key Insights

• Aspen Pharmacare Holdings will host its Annual General Meeting on 4th of December
• CEO Stephen Saad's total compensation includes salary of R10.2m
• The overall pay is 56% above the industry average
• Aspen Pharmacare Holdings' EPS declined by 37% over the past three years while total shareholder loss over the past three years was 25%

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Shareholders will probably not be too impressed with the underwhelming results at Aspen Pharmacare Holdings Limited (JSE:APN) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 4th of December. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Aspen Pharmacare Holdings

How Does Total Compensation For Stephen Saad Compare With Other Companies In The Industry?

According to our data, Aspen Pharmacare Holdings Limited has a market capitalization of R42b, and paid its CEO total annual compensation worth R21m over the year to June 2025. Notably, that's a decrease of 24% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at R10m.

On comparing similar companies from the South Africa Pharmaceuticals industry with market caps ranging from R34b to R110b, we found that the median CEO total compensation was R13m. Accordingly, our analysis reveals that Aspen Pharmacare Holdings Limited pays Stephen Saad north of the industry median. Furthermore, Stephen Saad directly owns R5.6b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. Aspen Pharmacare Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Aspen Pharmacare Holdings Limited's Growth Numbers

Over the last three years, Aspen Pharmacare Holdings Limited has shrunk its earnings per share by 37% per year. In the last year, its revenue is down 3.0%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Aspen Pharmacare Holdings Limited Been A Good Investment?

With a three year total loss of 25% for the shareholders, Aspen Pharmacare Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Aspen Pharmacare Holdings (free visualization of insider trades).

Important note: Aspen Pharmacare Holdings 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.