Yahoo Finance Should You Worry About Kindred Biosciences, Inc.'s (NASDAQ:KIN) CEO Pay Cheque?
In 2012 Richard Chin was appointed CEO of Kindred Biosciences, Inc. (NASDAQ:KIN). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Kindred Biosciences
How Does Richard Chin's Compensation Compare With Similar Sized Companies?
Our data indicates that Kindred Biosciences, Inc. is worth US$299m, and total annual CEO compensation was reported as US$2.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$520k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.
As you can see, Richard Chin is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Kindred Biosciences, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Kindred Biosciences has changed over time.
Is Kindred Biosciences, Inc. Growing?
On average over the last three years, Kindred Biosciences, Inc. has shrunk earnings per share by 15% each year (measured with a line of best fit). In the last year, its revenue is up 553%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Kindred Biosciences, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Kindred Biosciences, Inc. for providing a total return of 63% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared the total CEO remuneration paid by Kindred Biosciences, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Kindred Biosciences insiders are buying or selling shares.
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.
