In 2013 David Rausch was appointed CEO of Kewaunee Scientific Corporation (NASDAQ:KEQU). 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. This process should give us an idea about how appropriately the CEO is paid.
How Does David Rausch’s Compensation Compare With Similar Sized Companies?
Our data indicates that Kewaunee Scientific Corporation is worth US$77m, and total annual CEO compensation is US$935k. (This is based on the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$386k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$296k.
It would therefore appear that Kewaunee Scientific Corporation pays David Rausch more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Kewaunee Scientific has changed from year to year.
Is Kewaunee Scientific Corporation Growing?
Kewaunee Scientific Corporation has increased its earnings per share (EPS) by an average of 18% a year, over the last three years It achieved revenue growth of 23% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Kewaunee Scientific Corporation Been A Good Investment?
Most shareholders would probably be pleased with Kewaunee Scientific Corporation for providing a total return of 74% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We compared total CEO remuneration at Kewaunee Scientific Corporation with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kewaunee Scientific (free visualization of insider trades).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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 firstname.lastname@example.org.