Is Kenmare Resources plc's (LON:KMR) CEO Paid At A Competitive Rate?
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Michael Carvill became the CEO of Kenmare Resources plc (LON:KMR) in 1986. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Kenmare Resources
How Does Michael Carvill's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Kenmare Resources plc has a market cap of UK£196m, and is paying total annual CEO compensation of US$1.7m. (This is based on the year to December 2018). That's a notable increase of 8.8% on last year. While we always look at total compensation first, we note that the salary component is less, at US$649k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$693k.
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. 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, below, how CEO compensation at Kenmare Resources has changed over time.
Is Kenmare Resources plc Growing?
Over the last three years Kenmare Resources plc has grown its earnings per share (EPS) by an average of 128% per year (using a line of best fit). In the last year, its revenue is up 26%.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Kenmare Resources plc Been A Good Investment?
Kenmare Resources plc has served shareholders reasonably well, with a total return of 28% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We examined the amount Kenmare Resources 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.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kenmare Resources (free visualization of insider trades).
If you want to buy a stock that is better than Kenmare Resources, this free list of high return, low debt companies is a great place to look.
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 editorial-team@simplywallst.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.
