Yahoo Finance How Much is KFG Resources Ltd.'s (CVE:KFG) CEO Getting Paid?
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. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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$1.0m, and reported total annual CEO compensation of US$137k for the year to April 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$137k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$155k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of KFG Resources. Talking in terms of the sector, salary represented approximately 56% of total compensation out of all the companies we analysed, while other remuneration made up 44% of the pie. Speaking on a company level, KFG Resources prefers to tread along a traditional path, disbursing all compensation through a salary.
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. You can see, below, how CEO compensation at KFG Resources has changed over time.
Is KFG Resources Ltd. Growing?
Over the last three years KFG Resources Ltd. has seen earnings per share (EPS) move in a positive direction by an average of 30% per year (using a line of best fit). In the last year, its revenue is down 14%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has KFG Resources Ltd. Been A Good Investment?
Given the total loss of 60% over three years, many shareholders in KFG Resources Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Bob Kadane is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is an important area to keep your eyes on, but we've also identified 3 warning signs for KFG Resources (2 are concerning!) that you should be aware of before investing here.
Important note: KFG Resources may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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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. Thank you for reading.
