Stock Analysis

How Much Is Naspers' (JSE:NPN) CEO Getting Paid?

  •  Updated
Source: Shutterstock

Bob van Dijk has been the CEO of Naspers Limited (JSE:NPN) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Naspers pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Naspers

How Does Total Compensation For Bob van Dijk Compare With Other Companies In The Industry?

Our data indicates that Naspers Limited has a market capitalization of R1.5t, and total annual CEO compensation was reported as US$16m for the year to March 2020. We note that's an increase of 24% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

For comparison, other companies in the industry with market capitalizations above R121b, reported a median total CEO compensation of US$1.8m. Hence, we can conclude that Bob van Dijk is remunerated higher than the industry median. Moreover, Bob van Dijk also holds R3.6b worth of Naspers stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary US$1.4m US$1.3m 9%
Other US$15m US$12m 91%
Total CompensationUS$16m US$13m100%

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. Naspers sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

JSE:NPN CEO Compensation March 2nd 2021

Naspers Limited's Growth

Over the past three years, Naspers Limited has seen its earnings per share (EPS) grow by 1.6% per year. Its revenue is up 36% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Naspers Limited Been A Good Investment?

Most shareholders would probably be pleased with Naspers Limited for providing a total return of 76% 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.

In Summary...

As we noted earlier, Naspers pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Importantly though, shareholder returns for the last three years have been excellent. On the other hand, EPS growth — over the same period — is not as impressive. So, although we would've liked to see stronger EPS growth, positive investor returns lead us to believe CEO compensation is reasonable.

Shareholders may want to check for free if Naspers insiders are buying or selling shares.

Important note: Naspers 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.

If you decide to trade Naspers, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

Valuation is complex, but we're helping make it simple.

Find out whether Naspers is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis