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Henrik Tjärnström became the CEO of Kindred Group plc (STO:KIND SDB) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Henrik Tjärnström's Compensation Compare With Similar Sized Companies?
According to our data, Kindred Group plc has a market capitalization of kr18b, and pays its CEO total annual compensation worth UK£1.2m. (This number is for the twelve months until December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£1.2m. We looked at a group of companies with market capitalizations from UK£788m to UK£2.5b, and the median CEO total compensation was UK£570k.
Thus we can conclude that Henrik Tjärnström receives more in total compensation than the median of a group of companies in the same market, and of similar size to Kindred Group plc. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Kindred Group has changed over time.
Is Kindred Group plc Growing?
On average over the last three years, Kindred Group plc has grown earnings per share (EPS) by 26% each year (using a line of best fit). Its revenue is up 15% over last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kindred Group plc Been A Good Investment?
Kindred Group plc has not done too badly by shareholders, with a total return of 3.8%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We examined the amount Kindred Group plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Kindred Group insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.