Our View On Kinepolis Group's (EBR:KIN) CEO Pay

This article will reflect on the compensation paid to Eddy Duquenne who has served as CEO of Kinepolis Group NV (EBR:KIN) since 2008. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Kinepolis Group

Comparing Kinepolis Group NV's CEO Compensation With the industry

Our data indicates that Kinepolis Group NV has a market capitalization of €877m, and total annual CEO compensation was reported as €1.2m for the year to December 2019. That's just a smallish increase of 3.7% on last year. Notably, the salary which is €725.2k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between €341m and €1.4b, we discovered that the median CEO total compensation of that group was €1.2m. So it looks like Kinepolis Group compensates Eddy Duquenne in line with the median for the industry.

On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. Kinepolis Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Kinepolis Group NV's Growth Numbers

Kinepolis Group NV has seen its earnings per share (EPS) increase by 12% a year over the past three years. Its revenue is up 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Kinepolis Group NV Been A Good Investment?

Given the total shareholder loss of 30% over three years, many shareholders in Kinepolis Group NV are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Kinepolis Group pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, earnings growth is positive over the same time frame. Overall, we wouldn't say Eddy is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Kinepolis Group that investors should look into moving forward.

Switching gears from Kinepolis Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.
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