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Should You Worry About Kosmos Energy Ltd.'s (NYSE:KOS) CEO Salary Level?

Simply Wall St

Andy Inglis has been the CEO of Kosmos Energy Ltd. (NYSE:KOS) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Kosmos Energy

How Does Andy Inglis's Compensation Compare With Similar Sized Companies?

Our data indicates that Kosmos Energy Ltd. is worth US$3.0b, and total annual CEO compensation was reported as US$6.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$979k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.

So Andy Inglis receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Kosmos Energy, below.

NYSE:KOS CEO Compensation, November 13th 2019

Is Kosmos Energy Ltd. Growing?

Over the last three years Kosmos Energy Ltd. has grown its earnings per share (EPS) by an average of 44% per year (using a line of best fit). In the last year, its revenue is up 76%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Kosmos Energy Ltd. Been A Good Investment?

I think that the total shareholder return of 58%, over three years, would leave most Kosmos Energy Ltd. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Remuneration for Andy Inglis is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kosmos Energy (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.