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Key Insights

• Growthpoint Properties to hold its Annual General Meeting on 28th of November

• CEO Leon Sasse's total compensation includes salary of R8.08m

• Total compensation is 45% below industry average

• Over the past three years, Growthpoint Properties' FFO fell by 1.0% per year and over the past three years, the total shareholder return was 15%

Shareholders may be wondering what CEO Leon Sasse plans to do to improve the less than great performance at Growthpoint Properties Limited (JSE:GRT) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 28th of November. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Growthpoint Properties

How Does Total Compensation For Leon Sasse Compare With Other Companies In The Industry?

According to our data, Growthpoint Properties Limited has a market capitalization of R35b, and paid its CEO total annual compensation worth R22m over the year to June 2023. Notably, that's a decrease of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at R8.1m.

On comparing similar companies from the South African REITs industry with market caps ranging from R19b to R59b, we found that the median CEO total compensation was R41m. Accordingly, Growthpoint Properties pays its CEO under the industry median. Moreover, Leon Sasse also holds R33m worth of Growthpoint Properties stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 47% of total compensation represents salary and 53% is other remuneration. Growthpoint Properties 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.

A Look at Growthpoint Properties Limited's Growth Numbers

Growthpoint Properties Limited has reduced its funds from operations (FFO) by 1.0% per year over the last three years. Its revenue is up 5.3% over the last year.

The lack of FFO growth is certainly uninspiring. And the modest revenue growth over 12 months isn't much comfort against the reduced FFO. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.