We Think Rex Trueform Group Limited's (JSE:RTN) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Rex Trueform Group will host its Annual General Meeting on 13th of November
• Total pay for CEO Marcel Jonathan Golding includes R490.0k salary
• Total compensation is similar to the industry average
• Over the past three years, Rex Trueform Group's EPS fell by 25% and over the past three years, the total loss to shareholders 21%

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The results at Rex Trueform Group Limited (JSE:RTN) have been quite disappointing recently and CEO Marcel Jonathan Golding bears some responsibility for this. At the upcoming AGM on 13th of November, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Rex Trueform Group

Comparing Rex Trueform Group Limited's CEO Compensation With The Industry

According to our data, Rex Trueform Group Limited has a market capitalization of R291m, and paid its CEO total annual compensation worth R1.1m over the year to June 2025. That's a fairly small increase of 4.8% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at R490k.

On comparing similar-sized companies in the South African Specialty Retail industry with market capitalizations below R3.5b, we found that the median total CEO compensation was R1.1m. From this we gather that Marcel Jonathan Golding is paid around the median for CEOs in the industry. Furthermore, Marcel Jonathan Golding directly owns R14m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. Rex Trueform Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Rex Trueform Group Limited's Growth

Over the last three years, Rex Trueform Group Limited has shrunk its earnings per share by 25% per year. In the last year, its revenue is down 3.1%.

Few shareholders would be pleased to read that EPS have declined. 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 Rex Trueform Group Limited Been A Good Investment?

Since shareholders would have lost about 21% over three years, some Rex Trueform Group Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Rex Trueform Group (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Rex Trueform Group, 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. 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.