Yahoo Finance

Key Insights

• Bidvest Group to hold its Annual General Meeting on 28th of November

• Salary of R12.0m is part of CEO Mpumi Madisa's total remuneration

• Total compensation is similar to the industry average

• Over the past three years, Bidvest Group's EPS grew by 228% and over the past three years, the total shareholder return was 88%

We have been pretty impressed with the performance at The Bidvest Group Limited (JSE:BVT) recently and CEO Mpumi Madisa deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 28th of November. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Bidvest Group

How Does Total Compensation For Mpumi Madisa Compare With Other Companies In The Industry?

According to our data, The Bidvest Group Limited has a market capitalization of R93b, and paid its CEO total annual compensation worth R45m over the year to June 2023. Notably, that's an increase of 34% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at R12m.

On examining similar-sized companies in the South Africa Industrials industry with market capitalizations between R74b and R223b, we discovered that the median CEO total compensation of that group was R51m. So it looks like Bidvest Group compensates Mpumi Madisa in line with the median for the industry. Furthermore, Mpumi Madisa directly owns R8.6m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 35% of total compensation represents salary and 65% is other remuneration. Bidvest Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at The Bidvest Group Limited's Growth Numbers

Over the past three years, The Bidvest Group Limited has seen its earnings per share (EPS) grow by 228% per year. Its revenue is up 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent 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.