Shareholders Would Not Be Objecting To Trematon Capital Investments Limited's (JSE:TMT) CEO Compensation And Here's Why

Key Insights

• Trematon Capital Investments to hold its Annual General Meeting on 24th of January
• Total pay for CEO Arnold Shapiro includes R3.47m salary
• The total compensation is similar to the average for the industry
• Trematon Capital Investments' EPS grew by 111% over the past three years while total shareholder return over the past three years was 62%

The performance at Trematon Capital Investments Limited (JSE:TMT) has been quite strong recently and CEO Arnold Shapiro has played a role in it. Coming up to the next AGM on 24th of January, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Trematon Capital Investments

How Does Total Compensation For Arnold Shapiro Compare With Other Companies In The Industry?

Our data indicates that Trematon Capital Investments Limited has a market capitalization of R565m, and total annual CEO compensation was reported as R3.5m for the year to August 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is R3.47m, represents most of the total compensation being paid.

For comparison, other companies in the South Africa Real Estate industry with market capitalizations below R3.8b, reported a median total CEO compensation of R3.2m. So it looks like Trematon Capital Investments compensates Arnold Shapiro in line with the median for the industry. What's more, Arnold Shapiro holds R3.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	R3.5m	R3.3m	99%
Other	R46k	R308k	1%
Total Compensation	R3.5m	R3.6m	100%

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. Investors will find it interesting that Trematon Capital Investments pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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.

Trematon Capital Investments Limited's Growth

Trematon Capital Investments Limited's earnings per share (EPS) grew 111% per year over the last three years. It achieved revenue growth of 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Trematon Capital Investments Limited Been A Good Investment?

We think that the total shareholder return of 62%, over three years, would leave most Trematon Capital Investments Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Trematon Capital Investments pays its CEO a majority of compensation through a salary. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Trematon Capital Investments you should be aware of, and 2 of them can't be ignored.

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.