We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Altron Limited's (JSE:AEL) CEO For Now

Key Insights

• Altron's Annual General Meeting to take place on 31st of July
• CEO Werner Kapp's total compensation includes salary of R8.11m
• The overall pay is 272% above the industry average
• Over the past three years, Altron's EPS grew by 99% and over the past three years, the total shareholder return was 202%

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CEO Werner Kapp has done a decent job of delivering relatively good performance at Altron Limited (JSE:AEL) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 31st of July. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Altron

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

At the time of writing, our data shows that Altron Limited has a market capitalization of R8.2b, and reported total annual CEO compensation of R27m for the year to February 2025. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at R8.1m.

For comparison, other companies in the South Africa IT industry with market capitalizations ranging between R3.5b and R14b had a median total CEO compensation of R7.2m. Accordingly, our analysis reveals that Altron Limited pays Werner Kapp north of the industry median. What's more, Werner Kapp holds R15m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. Altron 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.

Altron Limited's Growth

Over the past three years, Altron Limited has seen its earnings per share (EPS) grow by 99% per year. In the last year, its revenue changed by just 0.03%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Altron Limited Been A Good Investment?

Most shareholders would probably be pleased with Altron Limited for providing a total return of 202% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Altron that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.