Yahoo Finance We Think Some Shareholders May Hesitate To Increase Standard Bank Group Limited's (JSE:SBK) CEO Compensation
Key Insights
Standard Bank Group to hold its Annual General Meeting on 10th of June
CEO Sim Tshabalala's total compensation includes salary of R9.98m
Total compensation is 65% above industry average
Standard Bank Group's total shareholder return over the past three years was 70% while its EPS grew by 51% over the past three years
CEO Sim Tshabalala has done a decent job of delivering relatively good performance at Standard Bank Group Limited (JSE:SBK) recently. As shareholders go into the upcoming AGM on 10th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Standard Bank Group
How Does Total Compensation For Sim Tshabalala Compare With Other Companies In The Industry?
Our data indicates that Standard Bank Group Limited has a market capitalization of R308b, and total annual CEO compensation was reported as R71m for the year to December 2023. Notably, that's an increase of 19% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at R10.0m.
On comparing similar companies in the South Africa Banks industry with market capitalizations above R148b, we found that the median total CEO compensation was R43m. This suggests that Sim Tshabalala is paid more than the median for the industry. What's more, Sim Tshabalala holds R156m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | R10.0m | R9.0m | 14% |
Other | R61m | R51m | 86% |
Total Compensation | R71m | R60m | 100% |
Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. It's interesting to note that Standard Bank Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Standard Bank Group Limited's Growth
Standard Bank Group Limited has seen its earnings per share (EPS) increase by 51% a year over the past three years. It achieved revenue growth of 20% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Standard Bank Group Limited Been A Good Investment?
We think that the total shareholder return of 70%, over three years, would leave most Standard Bank Group Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Standard Bank Group that investors should look into moving forward.
Switching gears from Standard Bank 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.
