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Is Kraken Robotics Inc.'s (CVE:PNG) CEO Paid Enough Relative To Peers?

The CEO of Kraken Robotics Inc. (CVE:PNG) is Karl Kenny. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Kraken Robotics

How Does Karl Kenny's Compensation Compare With Similar Sized Companies?

Our data indicates that Kraken Robotics Inc. is worth CA$85m, and total annual CEO compensation was reported as CA$244k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$188k. We examined a group of similar sized companies, with market capitalizations of below CA$261m. The median CEO total compensation in that group is CA$216k.

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That means Karl Kenny receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Kraken Robotics has changed over time.

TSXV:PNG CEO Compensation, January 13th 2020
TSXV:PNG CEO Compensation, January 13th 2020

Is Kraken Robotics Inc. Growing?

Kraken Robotics Inc. has reduced its earnings per share by an average of 4.6% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 78%.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has Kraken Robotics Inc. Been A Good Investment?

Boasting a total shareholder return of 314% over three years, Kraken Robotics 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.

In Summary...

Karl Kenny is paid around the same as most CEOs of similar size companies.

While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kraken Robotics (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.