The CEO of Kraken Robotics Inc. (CVE:PNG) is Karl Kenny, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Kraken Robotics.
How Does Total Compensation For Karl Kenny Compare With Other Companies In The Industry?
Our data indicates that Kraken Robotics Inc. has a market capitalization of CA$76m, and total annual CEO compensation was reported as CA$369k for the year to December 2019. Notably, that's an increase of 51% over the year before. In particular, the salary of CA$235.1k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$267m, reported a median total CEO compensation of CA$548k. Accordingly, Kraken Robotics pays its CEO under the industry median. What's more, Karl Kenny holds CA$13m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. It's interesting to note that Kraken Robotics pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Kraken Robotics Inc.'s Growth Numbers
Kraken Robotics Inc. has seen its earnings per share (EPS) increase by 13% a year over the past three years. Its revenue is up 150% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Kraken Robotics Inc. Been A Good Investment?
Most shareholders would probably be pleased with Kraken Robotics Inc. for providing a total return of 181% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
As we noted earlier, Kraken Robotics pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since earnings growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 4 warning signs for Kraken Robotics that investors should be aware of in a dynamic business environment.
Switching gears from Kraken Robotics, 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.
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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