Calgro M3 Holdings Limited's (JSE:CGR) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Calgro M3 Holdings will host its Annual General Meeting on 28th of June
• Total pay for CEO Wikus Lategan includes R4.72m salary
• The overall pay is 232% above the industry average
• Calgro M3 Holdings' total shareholder return over the past three years was 103% while its EPS grew by 140% over the past three years

CEO Wikus Lategan has done a decent job of delivering relatively good performance at Calgro M3 Holdings Limited (JSE:CGR) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 28th of June. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Calgro M3 Holdings

Comparing Calgro M3 Holdings Limited's CEO Compensation With The Industry

According to our data, Calgro M3 Holdings Limited has a market capitalization of R548m, and paid its CEO total annual compensation worth R12m over the year to February 2024. That's a notable decrease of 13% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at R4.7m.

In comparison with other companies in the South Africa Real Estate industry with market capitalizations under R3.6b, the reported median total CEO compensation was R3.5m. Accordingly, our analysis reveals that Calgro M3 Holdings Limited pays Wikus Lategan north of the industry median. What's more, Wikus Lategan holds R41m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	R4.7m	R4.2m	40%
Other	R7.0m	R9.2m	60%
Total Compensation	R12m	R13m	100%

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. Calgro M3 Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Calgro M3 Holdings Limited's Growth

Calgro M3 Holdings Limited has seen its earnings per share (EPS) increase by 140% a year over the past three years. Its revenue is down 16% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Calgro M3 Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Calgro M3 Holdings Limited for providing a total return of 103% 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...

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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Calgro M3 Holdings (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com