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Paul Sarant has been the CEO of K&S Corporation Limited (ASX:KSC) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
Check out our latest analysis for K&S
How Does Paul Sarant's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that K&S Corporation Limited has a market cap of AU$234m, and is paying total annual CEO compensation of AU$762k. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$712k. We examined companies with market caps from AU$142m to AU$567m, and discovered that the median CEO total compensation of that group was AU$788k.
So Paul Sarant is paid around the average of 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 K&S, below.
Is K&S Corporation Limited Growing?
On average over the last three years, K&S Corporation Limited has grown earnings per share (EPS) by 124% each year (using a line of best fit). Its revenue is up 11% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has K&S Corporation Limited Been A Good Investment?
K&S Corporation Limited has served shareholders reasonably well, with a total return of 19% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Remuneration for Paul Sarant is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling K&S (free visualization of insider trades).