Yahoo Finance How Much Is K&S' (ASX:KSC) CEO Getting Paid?
This article will reflect on the compensation paid to Paul Sarant who has served as CEO of K&S Corporation Limited (ASX:KSC) since 2014. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for K&S.
See our latest analysis for K&S
Comparing K&S Corporation Limited's CEO Compensation With the industry
Our data indicates that K&S Corporation Limited has a market capitalization of AU$185m, and total annual CEO compensation was reported as AU$1.1m for the year to June 2020. Notably, that's an increase of 31% over the year before. In particular, the salary of AU$746.4k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under AU$259m, the reported median total CEO compensation was AU$519k. This suggests that Paul Sarant is paid more than the median for the industry. Furthermore, Paul Sarant directly owns AU$286k worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$746k | AU$728k | 67% |
Other | AU$362k | AU$120k | 33% |
Total Compensation | AU$1.1m | AU$848k | 100% |
On an industry level, around 91% of total compensation represents salary and 9.3% is other remuneration. K&S sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
K&S Corporation Limited's Growth
K&S Corporation Limited's earnings per share (EPS) grew 19% per year over the last three years. In the last year, its revenue is down 13%.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has K&S Corporation Limited Been A Good Investment?
With a total shareholder return of 2.2% over three years, K&S Corporation Limited has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, K&S Corporation Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed us with its EPS growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for K&S that investors should be aware of in a dynamic business environment.
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.
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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