Our Take On Kenmare Resources plc’s (LON:KMR) CEO Salary
Michael Carvill became the CEO of Kenmare Resources plc (LON:KMR) in 1986. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Kenmare Resources
How Does Michael Carvill’s Compensation Compare With Similar Sized Companies?
According to our data, Kenmare Resources plc has a market capitalization of UK£231m, and pays its CEO total annual compensation worth US$1.5m. Notably, that’s an increase of 14% over the year before. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$637k.
Thus we can conclude that Michael Carvill receives more in total compensation than the median of a group of companies in the same market, and of similar size to Kenmare Resources plc. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Kenmare Resources, below.
Is Kenmare Resources plc Growing?
Kenmare Resources plc has increased its earnings per share (EPS) by an average of 112% a year, over the last three years Its revenue is up 31% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Kenmare Resources plc Been A Good Investment?
Boasting a total shareholder return of 46% over three years, Kenmare Resources plc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We compared the total CEO remuneration paid by Kenmare Resources plc, and compared it to remuneration at a group of 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. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate.
Or you might rather take a peek at this analytical visualization of historic cash flow, 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 editorial-team@simplywallst.com.
