We Discuss Whether Acsion Limited's (JSE:ACS) CEO Is Due For A Pay Rise

Key Insights

• Acsion will host its Annual General Meeting on 7th of October
• CEO Kiriakos Anastasiadis' total compensation includes salary of R2.78m
• Total compensation is 55% below industry average
• Over the past three years, Acsion's EPS grew by 256% and over the past three years, the total shareholder return was 71%

The impressive results at Acsion Limited (JSE:ACS) recently will be great news for shareholders. At the upcoming AGM on 7th of October, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for Acsion

Comparing Acsion Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Acsion Limited has a market capitalization of R3.3b, and reported total annual CEO compensation of R2.9m for the year to February 2024. There was no change in the compensation compared to last year. We note that the salary portion, which stands at R2.78m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the South Africa Real Estate industry with market caps ranging from R1.7b to R6.8b, we found that the median CEO total compensation was R6.4m. Accordingly, Acsion pays its CEO under the industry median. Moreover, Kiriakos Anastasiadis also holds R2.6b worth of Acsion 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	R2.8m	R2.8m	96%
Other	R120k	R120k	4%
Total Compensation	R2.9m	R2.9m	100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. Acsion is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. 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 Acsion Limited's Growth Numbers

Over the past three years, Acsion Limited has seen its earnings per share (EPS) grow by 256% per year. It achieved revenue growth of 21% over the last year.

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 Acsion Limited Been A Good Investment?

Most shareholders would probably be pleased with Acsion Limited for providing a total return of 71% 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.

To Conclude...

Kiriakos receives almost all of their compensation through a salary. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Acsion we think you should know about.

Important note: Acsion 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.