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Our View On Kape Technologies' (LON:KAPE) CEO Pay

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·3 min read
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This article will reflect on the compensation paid to Ido Erlichman who has served as CEO of Kape Technologies Plc (LON:KAPE) since 2016. This analysis will also assess whether Kape Technologies pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Kape Technologies

Comparing Kape Technologies Plc's CEO Compensation With the industry

At the time of writing, our data shows that Kape Technologies Plc has a market capitalization of UK£309m, and reported total annual CEO compensation of UK£580k for the year to December 2019. Notably, that's a decrease of 9.7% over the year before. Notably, the salary which is US$300.0k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from UK£152m to UK£607m, we found that the median CEO total compensation was UK£513k. From this we gather that Ido Erlichman is paid around the median for CEOs in the industry.

Component

2019

2018

Proportion (2019)

Salary

UK£300k

UK£300k

52%

Other

UK£280k

UK£342k

48%

Total Compensation

UK£580k

UK£642k

100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. It's interesting to note that Kape Technologies allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

Kape Technologies Plc's Growth

Kape Technologies Plc has seen its earnings per share (EPS) increase by 111% a year over the past three years. Its revenue is up 27% 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 EPS 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 Kape Technologies Plc Been A Good Investment?

Most shareholders would probably be pleased with Kape Technologies Plc for providing a total return of 189% 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.

In Summary...

As we noted earlier, Kape Technologies pays its CEO in line with similar-sized companies belonging to the same industry. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

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 3 warning signs for Kape Technologies that investors should think about before committing capital to this stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.