CEO of Vukile Property Fund Limited (JSE: VKE) might not expect shareholders to be so generous this year
Vukile Property Fund Limited (JSE: VKE) has not performed well recently and CEO Laurence Rapp will likely have to improve his game. Shareholders can take the opportunity to hold the board and management accountable for the unsatisfactory performance at the next general meeting of August 31, 2021. It will also be an opportunity to challenge the board of directors on the direction of the company and to vote on resolutions such as executive compensation. Based on our analysis, we believe CEO compensation may need to be reviewed in light of recent performance.
Check out our latest review for Vukile Property Fund
Comparison of CEO Compensation of Vukile Property Fund Limited with Industry
At the time of writing, our data shows that Vukile Property Fund Limited has a market capitalization of R11b and reported a total annual CEO compensation of R14m for the year through March 2021. This is a notable drop. by 35% compared to last year. Although this analysis focuses on total compensation, it should be recognized that the salary portion is lower, valued at R 5.0 million.
Compared to other companies in the industry with market caps ranging from R6.0b to R24b, the median total CEO compensation was R12m. It therefore appears that Vukile Property Fund remunerates Laurence Rapp in accordance with the sector median. In addition, Laurence Rapp also owns Vukile Property Fund worth R54 million directly under their own name, which tells us that they have a significant personal stake in the business.
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At the industry level, about 60% of total compensation is salary and 40% is other compensation. Vukile Property Fund pays a modest portion of compensation through salary, compared to the industry as a whole. If non-salary compensation dominates total salary, it is an indicator that the executive salary is linked to the performance of the company.
Growth of Vukile Property Fund Limited
Over the past three years, Vukile Property Fund Limited has reduced its earnings per share by 42% per year. Last year, its turnover fell by 16%.
The drop in BPA is a bit worrying. And the fact that revenues are declining from year to year no doubt paints a deplorable picture. It’s hard to say the company is firing on all cylinders, so shareholders might be averse to high CEO pay. Going forward, you might want to check out this free visual report at analyst forecasts for the future profits of the company.
Has Vukile Property Fund Limited been a good investment?
With a total three-year loss of 22% to shareholders, Vukile Property Fund Limited would certainly have some unhappy shareholders. This suggests that it would be unwise for the company to pay the CEO too generously.
Along with the poor performance of the company, shareholders have suffered from a low stock price return on their investments, which suggests that there is little or no chance that they are in favor of a raise. CEO salary. At the next AGM, management will have the opportunity to explain how they plan to get the company back on track and address investor concerns.
We can learn a lot about a business by studying its CEO compensation trends, as well as looking at other aspects of the business. That’s why we did our research and identified 5 warning signs for Vukile Property Fund (2 of which make us uncomfortable!) that you need to know to have a holistic understanding of the stock.
Arguably, the quality of the company is much more important than the compensation levels of CEOs. So look at this free list of interesting companies that have a HIGH return on equity and low leverage.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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