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Robert Graham became the CEO of Kronos Worldwide, Inc. (NYSE:KRO) in 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Robert Graham's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Kronos Worldwide, Inc. has a market cap of US$1.6b, and is paying total annual CEO compensation of US$2.6m. (This is based on the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$2.6m. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.0m.
Most shareholders would consider it a positive that Robert Graham takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Kronos Worldwide, below.
Is Kronos Worldwide, Inc. Growing?
Over the last three years Kronos Worldwide, Inc. has grown its earnings per share (EPS) by an average of 63% per year (using a line of best fit). In the last year, its revenue is down -6.8%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kronos Worldwide, Inc. Been A Good Investment?
I think that the total shareholder return of 171%, over three years, would leave most Kronos Worldwide, Inc. shareholders smiling. 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.
It looks like Kronos Worldwide, Inc. pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Robert Graham deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kronos Worldwide.
If you want to buy a stock that is better than Kronos Worldwide, this free list of high return, low debt companies is a great place to look.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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.