Yahoo Finance Should You Worry About KFG Resources Ltd.’s (CVE:KFG) CEO Salary Level?
Bob Kadane has been the CEO of KFG Resources Ltd. (CVE:KFG) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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$3.3m, and is paying total annual CEO compensation of US$137k. (This number is for the twelve months until April 2018). Notably, the salary of US$137k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$108k.
So Bob Kadane is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at KFG Resources, below.
Is KFG Resources Ltd. Growing?
Over the last three years KFG Resources Ltd. has grown its earnings per share (EPS) by an average of 74% per year (using a line of best fit). In the last year, its revenue is up 13%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has KFG Resources Ltd. Been A Good Investment?
KFG Resources Ltd. has served shareholders reasonably well, with a total return of 18% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Bob Kadane is paid around the same as most CEOs of similar size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying KFG Resources shares with their own money (free access).
If you want to buy a stock that is better than KFG Resources, this free list of high return, low debt companies is a great place to look.
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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.
