Kingston Resources Limited's (ASX:KSN) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Kingston Resources will host its Annual General Meeting on 17th of November
Salary of AU$344.4k is part of CEO Andrew Corbett's total remuneration
Total compensation is 61% above industry average
Over the past three years, Kingston Resources' EPS grew by 83% and over the past three years, the total loss to shareholders 70%
In the past three years, the share price of Kingston Resources Limited (ASX:KSN) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 17th of November could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Kingston Resources
Comparing Kingston Resources Limited's CEO Compensation With The Industry
According to our data, Kingston Resources Limited has a market capitalization of AU$40m, and paid its CEO total annual compensation worth AU$630k over the year to June 2023. That's a notable increase of 49% on last year. In particular, the salary of AU$344.4k, makes up a fairly large portion of the total compensation being paid to the CEO.
In comparison with other companies in the Australian Metals and Mining industry with market capitalizations under AU$315m, the reported median total CEO compensation was AU$392k. Hence, we can conclude that Andrew Corbett is remunerated higher than the industry median. What's more, Andrew Corbett holds AU$647k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$344k | AU$330k | 55% |
Other | AU$285k | AU$93k | 45% |
Total Compensation | AU$630k | AU$423k | 100% |
On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. Kingston Resources pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Kingston Resources Limited's Growth Numbers
Over the past three years, Kingston Resources Limited has seen its earnings per share (EPS) grow by 83% per year. In the last year, its revenue is up 276%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Kingston Resources Limited Been A Good Investment?
The return of -70% over three years would not have pleased Kingston Resources Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Kingston Resources that investors should look into moving forward.
Switching gears from Kingston Resources, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
