Yahoo Finance What Can We Conclude About Kelso Technologies' (TSE:KLS) CEO Pay?
This article will reflect on the compensation paid to Rik Bond who has served as CEO of Kelso Technologies Inc. (TSE:KLS) since 2010. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Kelso Technologies
How Does Total Compensation For Rik Bond Compare With Other Companies In The Industry?
According to our data, Kelso Technologies Inc. has a market capitalization of CA$30m, and paid its CEO total annual compensation worth US$386k over the year to December 2019. That's a notable increase of 64% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$180k.
In comparison with other companies in the industry with market capitalizations under CA$260m, the reported median total CEO compensation was US$247k. Accordingly, our analysis reveals that Kelso Technologies Inc. pays Rik Bond north of the industry median. What's more, Rik Bond holds CA$862k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$180k | US$180k | 47% |
Other | US$206k | US$56k | 53% |
Total Compensation | US$386k | US$236k | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. In Kelso Technologies' 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.
Kelso Technologies Inc.'s Growth
Kelso Technologies Inc.'s earnings per share (EPS) grew 105% per year over the last three years. It saw its revenue drop 23% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Kelso Technologies Inc. Been A Good Investment?
Boasting a total shareholder return of 50% over three years, Kelso Technologies Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
As we noted earlier, Kelso Technologies pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Rik's performance creates value for the company.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Kelso Technologies that investors should look into moving forward.
Switching gears from Kelso Technologies, 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.
This article by Simply Wall St is general in nature. 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.
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