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What Did KFG Resources Ltd.'s (CVE:KFG) CEO Take Home Last Year?

Bob Kadane became the CEO of KFG Resources Ltd. (CVE:KFG) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for KFG Resources

How Does Bob Kadane's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that KFG Resources Ltd. has a market cap of CA$2.0m, and reported total annual CEO compensation of US$137k for the year to April 2019. Notably, the salary of US$137k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$121k.

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So Bob Kadane is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at KFG Resources has changed from year to year.

TSXV:KFG CEO Compensation, September 27th 2019
TSXV:KFG CEO Compensation, September 27th 2019

Is KFG Resources Ltd. Growing?

Over the last three years KFG Resources Ltd. has grown its earnings per share (EPS) by an average of 87% per year (using a line of best fit). Its revenue is up 4.5% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has KFG Resources Ltd. Been A Good Investment?

With a three year total loss of 11%, KFG Resources Ltd. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Bob Kadane is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at KFG Resources.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.