It's Unlikely That Blue Label Telecoms Limited's (JSE:BLU) CEO Will See A Huge Pay Rise This Year

CEO Mark Levy has done a decent job of delivering relatively good performance at Blue Label Telecoms Limited (JSE:BLU) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24 November 2022. However, some shareholders will still be cautious of paying the CEO excessively.

Check out the opportunities and risks within the ZA Telecom industry.

Comparing Blue Label Telecoms Limited's CEO Compensation With The Industry

According to our data, Blue Label Telecoms Limited has a market capitalization of R4.7b, and paid its CEO total annual compensation worth R48m over the year to May 2022. That's a notable increase of 19% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at R10m.

On comparing similar companies from the same industry with market caps ranging from R1.7b to R7.0b, we found that the median CEO total compensation was R13m. This suggests that Mark Levy is paid more than the median for the industry. Furthermore, Mark Levy directly owns R432m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	R10m	R9.5m	21%
Other	R38m	R31m	79%
Total Compensation	R48m	R41m	100%

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. It's interesting to note that Blue Label Telecoms allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Blue Label Telecoms Limited's Growth

Blue Label Telecoms Limited's earnings per share (EPS) grew 118% per year over the last three years. Its revenue is down 5.7% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Blue Label Telecoms Limited Been A Good Investment?

Most shareholders would probably be pleased with Blue Label Telecoms Limited for providing a total return of 93% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 1 warning sign for Blue Label Telecoms 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.