Does Acsion's (JSE:ACS) CEO Salary Compare Well With Industry Peers?

The CEO of Acsion Limited (JSE:ACS) is Kiriakos Anastasiadis, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Acsion

Comparing Acsion Limited's CEO Compensation With the industry

According to our data, Acsion Limited has a market capitalization of R1.8b, and paid its CEO total annual compensation worth R2.9m over the year to February 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary of R2.9m is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under R2.9b, the reported median total CEO compensation was R3.4m. From this we gather that Kiriakos Anastasiadis is paid around the median for CEOs in the industry.

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. Speaking on a company level, Acsion prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Acsion Limited's Growth

Acsion Limited has reduced its earnings per share by 11% a year over the last three years. In the last year, its revenue is down 7.8%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Acsion Limited Been A Good Investment?

With a three year total loss of 33% for the shareholders, Acsion Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Acsion pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Acsion pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Acsion that investors should think about before committing capital to this stock.

Switching gears from Acsion, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. 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.
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