We Take A Look At Why Motus Holdings Limited's (JSE:MTH) CEO Has Earned Their Pay Packet
Key Insights
Motus Holdings to hold its Annual General Meeting on 8th of November
Total pay for CEO Osman Arbee includes R11.3m salary
The total compensation is similar to the average for the industry
Motus Holdings' EPS grew by 127% over the past three years while total shareholder return over the past three years was 160%
We have been pretty impressed with the performance at Motus Holdings Limited (JSE:MTH) recently and CEO Osman Arbee deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 8th of November. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Motus Holdings
How Does Total Compensation For Osman Arbee Compare With Other Companies In The Industry?
Our data indicates that Motus Holdings Limited has a market capitalization of R16b, and total annual CEO compensation was reported as R28m for the year to June 2023. Notably, that's a decrease of 41% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at R11m.
On examining similar-sized companies in the South African Specialty Retail industry with market capitalizations between R7.5b and R30b, we discovered that the median CEO total compensation of that group was R28m. From this we gather that Osman Arbee is paid around the median for CEOs in the industry. What's more, Osman Arbee holds R25m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | R11m | R11m | 40% |
Other | R17m | R37m | 60% |
Total Compensation | R28m | R48m | 100% |
On an industry level, around 40% of total compensation represents salary and 60% is other remuneration. Our data reveals that Motus Holdings allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Motus Holdings Limited's Growth Numbers
Motus Holdings Limited has seen its earnings per share (EPS) increase by 127% a year over the past three years. Its revenue is up 16% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Motus Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Motus Holdings Limited for providing a total return of 160% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
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. We identified 3 warning signs for Motus Holdings (1 is significant!) that you should be aware of before investing here.
Switching gears from Motus Holdings, 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.
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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.
