Shareholders May Be Wary Of Increasing Cashbuild Limited's (JSE:CSB) CEO Compensation Package

Key Insights

• Cashbuild to hold its Annual General Meeting on 24th of November
• Salary of R7.95m is part of CEO Werner de Jager's total remuneration
• The overall pay is 1,322% above the industry average
• Cashbuild's three-year loss to shareholders was 28% while its EPS was down 20% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Cashbuild Limited (JSE:CSB) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 24th of November. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Cashbuild

How Does Total Compensation For Werner de Jager Compare With Other Companies In The Industry?

Our data indicates that Cashbuild Limited has a market capitalization of R2.5b, and total annual CEO compensation was reported as R16m for the year to June 2025. That's a notable increase of 21% on last year. Notably, the salary which is R7.95m, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the South African Specialty Retail industry with market capitalizations under R3.4b, the reported median total CEO compensation was R1.1m. Accordingly, our analysis reveals that Cashbuild Limited pays Werner de Jager north of the industry median. What's more, Werner de Jager holds R2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 44% of total compensation out of all the companies we analyzed, while other remuneration made up 56% of the pie. Cashbuild pays out 50% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Cashbuild Limited's Growth Numbers

Over the last three years, Cashbuild Limited has shrunk its earnings per share by 20% per year. Its revenue is up 2.6% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cashbuild Limited Been A Good Investment?

With a three year total loss of 28% for the shareholders, Cashbuild Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Cashbuild that you should be aware of before investing.

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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.