It Looks Like The CEO Of Caxton and CTP Publishers and Printers Limited (JSE:CAT) May Be Underpaid Compared To Peers

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

Tue, Nov 28, 2023, 9:02 PM 4 min read

Key Insights

Caxton and CTP Publishers and Printers' Annual General Meeting to take place on 5th of December
Total pay for CEO Terry Moolman includes R4.50m salary
Total compensation is 66% below industry average
Caxton and CTP Publishers and Printers' EPS grew by 54% over the past three years while total shareholder return over the past three years was 172%

The solid performance at Caxton and CTP Publishers and Printers Limited (JSE:CAT) has been impressive and shareholders will probably be pleased to know that CEO Terry Moolman has delivered. At the upcoming AGM on 5th of December, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Caxton and CTP Publishers and Printers

Comparing Caxton and CTP Publishers and Printers Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Caxton and CTP Publishers and Printers Limited has a market capitalization of R4.0b, and reported total annual CEO compensation of R4.5m for the year to June 2023. That's a fairly small increase of 4.0% over the previous year. It is worth noting that the CEO compensation consists entirely of the salary, worth R4.5m.

In comparison with other companies in the South Africa Media industry with market capitalizations ranging from R1.9b to R7.4b, the reported median CEO total compensation was R13m. This suggests that Terry Moolman is paid below the industry median. What's more, Terry Moolman holds R1.8b 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	R4.5m	R4.3m	100%
Other	-	-	-
Total Compensation	R4.5m	R4.3m	100%

Talking in terms of the industry, salary represented approximately 90% of total compensation out of all the companies we analyzed, while other remuneration made up 10% of the pie. At the company level, Caxton and CTP Publishers and Printers pays Terry Moolman solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation — JSE:CAT CEO Compensation November 29th 2023

A Look at Caxton and CTP Publishers and Printers Limited's Growth Numbers

Caxton and CTP Publishers and Printers Limited's earnings per share (EPS) grew 54% per year over the last three years. In the last year, its revenue is up 17%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, 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 Caxton and CTP Publishers and Printers Limited Been A Good Investment?

We think that the total shareholder return of 172%, over three years, would leave most Caxton and CTP Publishers and Printers Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Caxton and CTP Publishers and Printers pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Caxton and CTP Publishers and Printers that investors should think about before committing capital to this stock.

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.