We Think HomeChoice International plc's (JSE:HIL) CEO Compensation Looks Fair
Key Insights
- HomeChoice International to hold its Annual General Meeting on 19th of June
- Total pay for CEO Sean Wibberley includes R4.35m salary
- The total compensation is similar to the average for the industry
- HomeChoice International's EPS grew by 34% over the past three years while total shareholder return over the past three years was 138%
We have been pretty impressed with the performance at HomeChoice International plc (JSE:HIL) recently and CEO Sean Wibberley deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 19th of June. The focus will probably be on the future company strategy as shareholders 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.
View our latest analysis for HomeChoice International
How Does Total Compensation For Sean Wibberley Compare With Other Companies In The Industry?
According to our data, HomeChoice International plc has a market capitalization of R3.5b, and paid its CEO total annual compensation worth R16m over the year to December 2024. That's a notable increase of 76% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at R4.4m.
In comparison with other companies in the South African Specialty Retail industry with market capitalizations ranging from R1.8b to R7.1b, the reported median CEO total compensation was R13m. From this we gather that Sean Wibberley is paid around the median for CEOs in the industry. Furthermore, Sean Wibberley directly owns R22m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | R4.4m | R4.2m | 27% |
| Other | R12m | R4.9m | 73% |
| Total Compensation | R16m | R9.1m | 100% |
Speaking on an industry level, nearly 46% of total compensation represents salary, while the remainder of 54% is other remuneration. In HomeChoice International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
HomeChoice International plc's Growth
HomeChoice International plc has seen its earnings per share (EPS) increase by 34% a year over the past three years. It achieved revenue growth of 21% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has HomeChoice International plc Been A Good Investment?
We think that the total shareholder return of 138%, over three years, would leave most HomeChoice International plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 2 which make us uncomfortable) in HomeChoice International we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.