We Take A Look At Why ISA Holdings Limited's (JSE:ISA) CEO Has Earned Their Pay Packet

editorial-team@simplywallst.com (Simply Wall St)

19 June 2024 at 7:08 am·3-min read

Key Insights

ISA Holdings to hold its Annual General Meeting on 26th of June
Salary of R3.86m is part of CEO Clifford Katz's total remuneration
The overall pay is comparable to the industry average
Over the past three years, ISA Holdings' EPS grew by 32% and over the past three years, the total shareholder return was 330%

We have been pretty impressed with the performance at ISA Holdings Limited (JSE:ISA) recently and CEO Clifford Katz deserves a mention for their role in it. Coming up to the next AGM on 26th of June, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for ISA Holdings

Comparing ISA Holdings Limited's CEO Compensation With The Industry

According to our data, ISA Holdings Limited has a market capitalization of R309m, and paid its CEO total annual compensation worth R4.3m over the year to February 2024. That's a notable increase of 19% on last year. Notably, the salary which is R3.86m, represents most of the total compensation being paid.

For comparison, other companies in the South Africa Software industry with market capitalizations below R3.6b, reported a median total CEO compensation of R4.7m. So it looks like ISA Holdings compensates Clifford Katz in line with the median for the industry. Furthermore, Clifford Katz directly owns R29m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	R3.9m	R3.5m	91%
Other	R397k	R62k	9%
Total Compensation	R4.3m	R3.6m	100%

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. ISA Holdings pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at ISA Holdings Limited's Growth Numbers

Over the past three years, ISA Holdings Limited has seen its earnings per share (EPS) grow by 32% per year. In the last year, its revenue is up 33%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has ISA Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 330% over three years, ISA Holdings Limited has done well by shareholders. 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.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 5 warning signs for ISA Holdings you should be aware of, and 3 of them are significant.

Switching gears from ISA Holdings, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Fortune
Departing Nvidia VP salutes Jensen Huang’s leadership, and pinpoints the 3 key principles he taught her
After 7 years of working for Nvidia’s CEO Jensen Huang, the chipmaker's outgoing VP said that her boss taught her about the importance of first principles thinking, zero-billion dollar markets and speed-of-light execution.
Insider Monkey
The Wealthiest Person in Singapore
We recently compiled a list of the 30 Wealthiest People in Singapore and in this article, we will look at the richest person in Singapore. An Outlook of the Singaporean Economy According to the Ministry of Trade and Industry (MTI), the Singaporean economy rose at a more rapid pace than expected in Q1 2024. The GDP […]
The Smart Investor
Share Prices of These 4 Singapore Stocks Are Hitting Their 52-Week Highs: Can They Continue Their Run?
These four Singapore stocks are seeing their share prices shooting up, but can they continue to do so? The post Share Prices of These 4 Singapore Stocks Are Hitting Their 52-Week Highs: Can They Continue Their Run? appeared first on The Smart Investor.
The Smart Investor
iFAST’s Share Price Surged 64% in the Past Year: Can the Fintech Surpass its All-Time High of S$10?
With iFAST’s share price shooting up by 64%, does the fintech have what it takes to reclaim its all-time high of S$10? The post iFAST’s Share Price Surged 64% in the Past Year: Can the Fintech Surpass its All-Time High of S$10? appeared first on The Smart Investor.
The Telegraph
Investors have no idea how exposed they are to the next market crash
Before we read too much into Nvidia’s £400bn share price slide, let’s put it in context.
Simply Wall St.
Unveiling Three SGX Stocks That Might Be Trading Below Their Estimated Fair Value
As the Singapore market continues to evolve, investors are keenly observing trends and shifts that could signal new opportunities. Amidst these developments, identifying stocks that may be trading below their estimated fair value could offer potential for those looking to diversify or optimize their portfolios in current market conditions.
Barrons.com
Alibaba Stock Looks Poised for a Rally. Why China Trade Tensions Could Be a Catalyst.
Technical market indicators show Alibaba stock is primed for a rally that could shake shares in the Chinese tech giant out of their funk—if only there were a catalyst. Geopolitical tensions or trade talks could be the ticket, or a risk. Alibaba stock continues to languish, down more than 1% so far this year—badly lagging behind the index as well as Hong Kong’s benchmark—and sliding more than 8% in the past month.
The Telegraph
Lock in a two-year savings rate now before rates tumble, experts warn
Savers have been urged to seize a “golden opportunity” to lock their cash away for longer before interest rates begin to fall in the coming months.
Simply Wall St.
Multi-Chem And Two Other Leading Dividend Stocks On SGX
As digital solutions like Visa's new emergency card service reshape financial interactions globally, the Singapore market is also experiencing shifts that reflect broader technological advancements and consumer behavior changes. In this dynamic environment, dividend stocks such as Multi-Chem offer investors potential stability and regular income, qualities that are increasingly valuable in rapidly evolving markets.
Barrons.com
Fed Officials See 3 Possible Paths for Rates
Faced with uncertainty, Fed officials are offering various scenarios for the economy and interest rates.
Reuters
Who owns France's debt and why it matters
President Emmanuel Macron's shock snap election has rocked France's bond market, the largest in the euro zone, as a strong showing for the far right and left wing parties in opinion polls exacerbates concerns about fiscal sustainability. Earlier in June, the risk premium France pays for its debt on top of Germany's neared levels last seen in 2012, during the euro zone debt crisis. The question is how much more turmoil the two-round elections on June 30 and July 7 could sow in bond markets.
Reuters
Modi's govt calls on Indian state to look into Reuters report on Foxconn hiring
Indian Prime Minister Narendra Modi's government on Wednesday said it has asked the Tamil Nadu state to submit a "detailed report" after a Reuters story revealed that Apple supplier Foxconn rejected married women from iPhone assembly jobs in the country. In a statement calling for the probe, the federal government's Ministry of Labour and Employment cited the Equal Remuneration Act of 1976, saying the law "clearly stipulates that no discrimination (is) to be made while recruiting men and women workers." The ministry said it has requested a detailed report from the Labour Department of Tamil Nadu, site of a major iPhone factory where Reuters uncovered Foxconn’s practice of shunning married women from jobs.
Simply Wall St.
Hour Glass And 2 More SGX Dividend Stocks To Consider
As the global payment landscape evolves with initiatives like the European Payments Initiative, investors may find stability and potential growth in dividend stocks amidst market fluctuations. In Singapore, where financial markets are known for their robustness, dividend stocks such as Hour Glass can offer investors a blend of income and relative security in uncertain times.
Reuters
Interactive Brokers reveals $48 million loss from NYSE glitch
The brokerage had filed claims with the NYSE to compensate it for these losses, but the exchange denied its ask, Interactive said. Outages caused by software and hardware malfunction have become common as trading moved from floors and pits to electronic systems, but glitches can roil markets and frustrate investors. Interactive said its losses stemmed from an attempt by its clients to take advantage of the massive drop in Berkshire's stock price.
Zacks
Why This 1 Growth Stock Could Be a Great Addition to Your Portfolio
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Reuters
Medtronic CFO Karen Parkhill jumps ship to HP
Parkhill, who spent the last eight years as CFO at Medtronic, will join HP on Aug. 5 and succeed Marie Myers, who left the personal computer maker for server maker Hewlett Packard Enterprise. Parkhill has previously served as CFO for commercial banking at JPMorgan Chase and Co and has held several other leadership roles.
Investing.com
Asian stocks fall as Micron sparks tech losses, China data weighs
Investing.com-- Most Asian stocks fell on Thursday as technology shares tracked weakness in their U.S. peers following underwhelming guidance from chipmaking major Micron.
The Independent
Bitcoin price dives amid ‘perfect storm’ predictions
Crypto’s record-breaking rally came crashing to an end as ‘fear’ enters market for first time in 2024
Reuters
Japan authorities on high alert against rapid yen decline, says top currency diplomat
TOKYO (Reuters) -Japanese authorities were "seriously concerned and on high alert" about the yen's rapid decline, said the country's top currency diplomat Masato Kanda, escalating warnings as the currency languished at its weakest level in almost 40 years. "It is generally accepted that the current weakness in the yen is not necessarily justified, therefore believed to be driven by speculators," Kanda, vice finance minister for international affairs, told reporters on Wednesday. The weak yen has become a headache for Japanese policymakers by boosting the cost of imported raw materials, pushing up inflation and hurting consumption.
Reuters
Dollar hits 38-year high vs yen; US stocks rise
NEW YORK (Reuters) -The U.S. dollar on Wednesday hit its highest level against the Japanese yen in nearly 38 years, and investor speculation was high that authorities in Japan could intervene to strengthen the country's currency, while major U.S. stock indexes climbed. Japan's top currency diplomat, Masato Kanda, said authorities were "seriously concerned and on high alert" about the yen's rapid decline. The U.S. dollar hit its strongest level since December 1986 against the yen, and it was last up 0.7% at 160.697 yen .

Straits Times Index

S&P 500

Dow

Nasdaq

Bitcoin USD

CMC Crypto 200

FTSE 100

Gold

Crude Oil

10-Yr Bond

Nikkei

Hang Seng

FTSE Bursa Malaysia

Jakarta Composite Index

PSE Index

Key Insights

Comparing ISA Holdings Limited's CEO Compensation With The Industry

A Look at ISA Holdings Limited's Growth Numbers

Has ISA Holdings Limited Been A Good Investment?

In Summary...

Latest stories