Rik Bond has been the CEO of Kelso Technologies Inc. (TSE:KLS) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Rik Bond's Compensation Compare With Similar Sized Companies?
Our data indicates that Kelso Technologies Inc. is worth CA$48m, and total annual CEO compensation was reported as US$236k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$180k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$156k.
It would therefore appear that Kelso Technologies Inc. pays Rik Bond more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Kelso Technologies, below.
Is Kelso Technologies Inc. Growing?
Kelso Technologies Inc. has increased its earnings per share (EPS) by an average of 69% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 86%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Kelso Technologies Inc. Been A Good Investment?
Given the total loss of 16% over three years, many shareholders in Kelso Technologies Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Kelso Technologies Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Kelso Technologies shares with their own money (free access).
If you want to buy a stock that is better than Kelso Technologies, this free list of high return, low debt companies is a great place to look.
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