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Key Insights

• Trellidor Holdings to hold its Annual General Meeting on 7th of December

• CEO Terry Dennison's total compensation includes salary of R3.29m

• Total compensation is similar to the industry average

• Over the past three years, Trellidor Holdings' EPS grew by 27% and over the past three years, the total shareholder return was 22%

Performance at Trellidor Holdings Limited (JSE:TRL) has been reasonably good and CEO Terry Dennison has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 7th of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Trellidor Holdings

Comparing Trellidor Holdings Limited's CEO Compensation With The Industry

According to our data, Trellidor Holdings Limited has a market capitalization of R224m, and paid its CEO total annual compensation worth R3.9m over the year to June 2023. Notably, that's a decrease of 23% over the year before. In particular, the salary of R3.29m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the South Africa Building industry with market capitalizations below R3.8b, reported a median total CEO compensation of R3.5m. So it looks like Trellidor Holdings compensates Terry Dennison in line with the median for the industry. Furthermore, Terry Dennison directly owns R21m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. It's interesting to note that Trellidor Holdings pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Trellidor Holdings Limited's Growth

Trellidor Holdings Limited's earnings per share (EPS) grew 27% per year over the last three years. In the last year, its revenue is down 2.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.