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In 1970 Bill McMorrow was appointed CEO of Kennedy-Wilson Holdings, Inc. (NYSE:KW). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bill McMorrow's Compensation Compare With Similar Sized Companies?
According to our data, Kennedy-Wilson Holdings, Inc. has a market capitalization of US$3.0b, and pays its CEO total annual compensation worth US$13m. (This figure is for the year to December 2018). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.5m. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.3m.
Thus we can conclude that Bill McMorrow receives more in total compensation than the median of a group of companies in the same market, and of similar size to Kennedy-Wilson Holdings, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Kennedy-Wilson Holdings, below.
Is Kennedy-Wilson Holdings, Inc. Growing?
Kennedy-Wilson Holdings, Inc. has increased its earnings per share (EPS) by an average of 65% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -7.8%.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Kennedy-Wilson Holdings, Inc. Been A Good Investment?
With a total shareholder return of 10% over three years, Kennedy-Wilson Holdings, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at Kennedy-Wilson Holdings, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Whatever your view on compensation, you might want to check if insiders are buying or selling Kennedy-Wilson Holdings shares (free trial).
Important note: Kennedy-Wilson Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 firstname.lastname@example.org. 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.