Octodec Investments Limited's (JSE:OCT) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Octodec Investments' Annual General Meeting to take place on 3rd of February
• Salary of R7.44m is part of CEO Jeff Wapnick's total remuneration
• Total compensation is similar to the industry average
• Octodec Investments' total shareholder return over the past three years was 96% while its EPS grew by 21% over the past three years

We have been pretty impressed with the performance at Octodec Investments Limited (JSE:OCT) recently and CEO Jeff Wapnick deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 3rd of February. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and 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 Octodec Investments

Comparing Octodec Investments Limited's CEO Compensation With The Industry

Our data indicates that Octodec Investments Limited has a market capitalization of R3.0b, and total annual CEO compensation was reported as R8.0m for the year to August 2024. That's a fairly small increase of 3.7% over the previous year. In particular, the salary of R7.44m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the South African REITs industry with market capitalizations ranging between R1.8b and R7.4b had a median total CEO compensation of R9.0m. So it looks like Octodec Investments compensates Jeff Wapnick in line with the median for the industry. Furthermore, Jeff Wapnick directly owns R48m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 37% of total compensation represents salary, while the remainder of 63% is other remuneration. Octodec Investments pays out 92% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Octodec Investments Limited's Growth

Octodec Investments Limited has seen its earnings per share (EPS) increase by 21% a year over the past three years. Its revenue is up 5.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Octodec Investments Limited Been A Good Investment?

We think that the total shareholder return of 96%, over three years, would leave most Octodec Investments Limited shareholders smiling. 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them 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. That's why we did our research, and identified 4 warning signs for Octodec Investments (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Octodec Investments 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.