Increases to Woolworths Holdings Limited's (JSE:WHL) CEO Compensation Might Cool off for now

In This Article:

Key Insights

  • Woolworths Holdings will host its Annual General Meeting on 22nd of November

  • CEO Roy Bagattini's total compensation includes salary of R18.2m

  • Total compensation is 56% above industry average

  • Woolworths Holdings' EPS grew by 95% over the past three years while total shareholder return over the past three years was 89%

CEO Roy Bagattini has done a decent job of delivering relatively good performance at Woolworths Holdings Limited (JSE:WHL) recently. As shareholders go into the upcoming AGM on 22nd of November, 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.

View our latest analysis for Woolworths Holdings

How Does Total Compensation For Roy Bagattini Compare With Other Companies In The Industry?

According to our data, Woolworths Holdings Limited has a market capitalization of R63b, and paid its CEO total annual compensation worth R84m over the year to June 2023. We note that's an increase of 36% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at R18m.

On comparing similar companies from the South Africa Multiline Retail industry with market caps ranging from R36b to R117b, we found that the median CEO total compensation was R54m. This suggests that Roy Bagattini is paid more than the median for the industry. Moreover, Roy Bagattini also holds R176m worth of Woolworths Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2023

2022

Proportion (2023)

Salary

R18m

R16m

22%

Other

R66m

R45m

78%

Total Compensation

R84m

R62m

100%

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. In Woolworths Holdings' case, non-salary compensation represents a greater slice of total remuneration, 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.

ceo-compensation
JSE:WHL CEO Compensation November 16th 2023

Woolworths Holdings Limited's Growth

Woolworths Holdings Limited has seen its earnings per share (EPS) increase by 95% a year over the past three years. It achieved revenue growth of 10% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..