In 2014 Véronique Laury-Deroubaix was appointed CEO of Kingfisher plc (LON:KGF). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Véronique Laury-Deroubaix’s Compensation Compare With Similar Sized Companies?
According to our data, Kingfisher plc has a market capitalization of UK£4.5b, and pays its CEO total annual compensation worth UK£1.6m. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at UK£768k. We looked at a group of companies with market capitalizations from UK£3.1b to UK£9.4b, and the median CEO compensation was UK£2.5m.
Most shareholders would consider it a positive that Véronique Laury-Deroubaix takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Kingfisher has changed over time.
Is Kingfisher plc Growing?
Over the last three years, Kingfisher plc has not seen its earnings per share change much, though they have improved slightly. It achieved revenue growth of 2.1% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Kingfisher plc Been A Good Investment?
With a three year total loss of 27%, Kingfisher plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Kingfisher plc is currently paying its CEO below what is normal for companies of its size.
Véronique Laury-Deroubaix is paid less than CEOs of similar size companies, but growth hasn’t been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kingfisher.
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 firstname.lastname@example.org.