Is Kforce Inc’s (NASDAQ:KFRC) CEO Incentives Align With Yours?
In 1994 David Dunkel was appointed CEO of Kforce Inc (NASDAQ:KFRC). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Kforce
How Does David Dunkel’s Compensation Compare With Similar Sized Companies?
Our data indicates that Kforce Inc is worth US$844m, and total annual CEO compensation is US$3m. That’s less than last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2m.
As you can see, David Dunkel is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Kforce Inc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Kforce has changed from year to year.
Is Kforce Inc Growing?
On average over the last three years, Kforce Inc has grown earnings per share (EPS) by 3.1% each year. It achieved revenue growth of 3.9% over the last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Kforce Inc Been A Good Investment?
Kforce Inc has served shareholders reasonably well, with a total return of 30% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
We compared the total CEO remuneration paid by Kforce Inc, 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.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kforce Inc.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.
