CEO Fleetwood Grobler has done a decent job of delivering relatively good performance at Sasol Limited (JSE:SOL) recently. As shareholders go into the upcoming AGM on 02 December 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for Sasol
Comparing Sasol Limited's CEO Compensation With The Industry
Our data indicates that Sasol Limited has a market capitalization of R189b, and total annual CEO compensation was reported as R43m for the year to June 2022. That's a notable increase of 33% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at R11m.
In comparison with other companies in the industry with market capitalizations over R137b, the reported median total CEO compensation was R57m. This suggests that Sasol remunerates its CEO largely in line with the industry average. Moreover, Fleetwood Grobler also holds R8.2m worth of Sasol stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. Sasol 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.
Sasol Limited's Growth
Over the past three years, Sasol Limited has seen its earnings per share (EPS) grow by 123% per year. Its revenue is up 37% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sasol Limited Been A Good Investment?
Sasol Limited has served shareholders reasonably well, with a total return of 18% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for Sasol (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Sasol, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here