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Andy Inglis has been the CEO of Kosmos Energy Ltd. (NYSE:KOS) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Kosmos Energy.
How Does Total Compensation For Andy Inglis Compare With Other Companies In The Industry?
Our data indicates that Kosmos Energy Ltd. has a market capitalization of US$430m, and total annual CEO compensation was reported as US$5.2m for the year to December 2019. Notably, that's a decrease of 19% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$1.9m. Hence, we can conclude that Andy Inglis is remunerated higher than the industry median. Furthermore, Andy Inglis directly owns US$2.0m worth of shares in the company.
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Kosmos Energy pays out 20% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Kosmos Energy Ltd.'s Growth Numbers
Kosmos Energy Ltd. has seen its earnings per share (EPS) increase by 16% a year over the past three years. It saw its revenue drop 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Kosmos Energy Ltd. Been A Good Investment?
With a three year total loss of 86% for the shareholders, Kosmos Energy Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Andy is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Andy is underpaid, in fact compensation is definitely on the higher side.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Kosmos Energy that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. 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.
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