We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Adcock Ingram Holdings Limited's (JSE:AIP) CEO For Now

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Key Insights

CEO Andy Hall has done a decent job of delivering relatively good performance at Adcock Ingram Holdings Limited (JSE:AIP) recently. As shareholders go into the upcoming AGM on 21st 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 Adcock Ingram Holdings

How Does Total Compensation For Andy Hall Compare With Other Companies In The Industry?

According to our data, Adcock Ingram Holdings Limited has a market capitalization of R8.3b, and paid its CEO total annual compensation worth R17m over the year to June 2023. We note that's an increase of 8.9% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at R7.2m.

On comparing similar companies from the South Africa Pharmaceuticals industry with market caps ranging from R3.7b to R15b, we found that the median CEO total compensation was R11m. This suggests that Andy Hall is paid more than the median for the industry. Furthermore, Andy Hall directly owns R1.2m worth of shares in the company.

Component

2023

2022

Proportion (2023)

Salary

R7.2m

R6.2m

43%

Other

R9.6m

R9.2m

57%

Total Compensation

R17m

R15m

100%

Talking in terms of the industry, salary represented approximately 55% of total compensation out of all the companies we analyzed, while other remuneration made up 45% of the pie. Adcock Ingram Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
JSE:AIP CEO Compensation November 15th 2023

A Look at Adcock Ingram Holdings Limited's Growth Numbers

Adcock Ingram Holdings Limited has seen its earnings per share (EPS) increase by 14% a year over the past three years. In the last year, its revenue is up 4.9%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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.