U.S. Markets closed

Does KBS Fashion Group Limited’s (NASDAQ:KBSF) CEO Pay Matter?

Keyan Yan became the CEO of KBS Fashion Group Limited (NASDAQ:KBSF) in 2011. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for KBS Fashion Group

How Does Keyan Yan’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that KBS Fashion Group Limited has a market cap of US$8.3m, and is paying total annual CEO compensation of US$304k. (This is based on the year to 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$304k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$296k.

So Keyan Yan is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at KBS Fashion Group has changed over time.

NasdaqCM:KBSF CEO Compensation November 27th 18

Is KBS Fashion Group Limited Growing?

On average over the last three years, KBS Fashion Group Limited has shrunk earnings per share by 92% each year. Its revenue is down -33% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has KBS Fashion Group Limited Been A Good Investment?

Since shareholders would have lost about 93% over three years, some KBS Fashion Group Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Keyan Yan is paid around what is normal the leaders of comparable size companies.

Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it’s wise for the company to pay any more, before returns improve. Shareholders may want to check for free if KBS Fashion Group insiders are buying or selling shares.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.