South African company Bid Corporation Limited, under the leadership of CEO Bernard Berson, has been delivering a strong performance, as evidenced by its 68% annual increase in earnings per share (EPS) over the past three years and a 33% rise in revenue over the last year. The company's market capitalization currently stands at R142 billion. These positive outcomes have led to expectations that the upcoming Annual General Meeting (AGM) on November 16th will likely prioritize discussions on long-term growth expectations and business strategies rather than CEO remuneration.
Berson's significant contribution to the company was acknowledged on Thursday. His total compensation for the fiscal year ending June 2023 was R57m, a 16% rise from the previous year. This figure includes a salary of R21 billion, which aligns with the industry median for companies with similar market caps, ranging from R74 billion to R223 billion. Furthermore, Berson owns R231 million (USD1 = ZAR18.6562) worth of company shares directly.
In comparison to other entities within the South African Consumer Retailing industry, where salaries account for approximately 31% of total compensation and other benefits make up the remaining 69%, Bid Corporation allocates a larger share of remuneration towards salary. This suggests a performance-based pay structure that could be contributing to the company's impressive performance.
The total shareholder return over the past three years stands at 68%, indicating that shareholders are likely satisfied with the company's performance. As such, it is expected that the AGM will focus more on future growth potential and business strategies rather than executive remuneration voting.
InvestingPro Insights
The performance of Bid Corporation Limited is further emphasized by data from InvestingPro. The company has been noted for its accelerating revenue growth and consistently increasing earnings per share, two key metrics that align with the 68% annual increase in EPS and 33% rise in revenue mentioned in the article. Additionally, InvestingPro highlights that Bid Corporation is a prominent player in the Consumer Staples Distribution & Retail industry, reinforcing its position in the South African Consumer Retailing industry.
InvestingPro Tips also indicate that Bid Corporation has raised its dividend for 3 consecutive years and has maintained dividend payments for 8 consecutive years. This suggests a commitment to returning value to shareholders, which aligns with the 68% total shareholder return over the past three years.
InvestingPro offers a wealth of additional tips and insights for those interested in exploring more about Bid Corporation and other companies. For example, there are 7 more tips related to Bid Corporation alone. These insights could be particularly valuable for shareholders and potential investors looking to understand the company's performance and potential.
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