Why Kraken Robotics Inc.’s (CVE:PNG) CEO Pay Matters To You

Karl Kenny is the CEO of Kraken Robotics Inc. (CVE:PNG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Kraken Robotics

How Does Karl Kenny’s Compensation Compare With Similar Sized Companies?

Our data indicates that Kraken Robotics Inc. is worth CA$84m, and total annual CEO compensation was reported as CA$244k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$188k. We examined a group of similar sized companies, with market capitalizations of below CA$261m. The median CEO total compensation in that group is CA$221k.

So Karl Kenny 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.

The graphic below shows how CEO compensation at Kraken Robotics has changed from year to year.

TSXV:PNG CEO Compensation, January 9th 2020
TSXV:PNG CEO Compensation, January 9th 2020

Is Kraken Robotics Inc. Growing?

Kraken Robotics Inc. has reduced its earnings per share by an average of 4.6% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 78%.

The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has Kraken Robotics Inc. Been A Good Investment?

Boasting a total shareholder return of 293% over three years, Kraken Robotics Inc. has done well by shareholders. 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 Karl Kenny is close enough to the median pay for a CEO of a similar sized company .

While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Kraken Robotics shares (free trial).

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

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.

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. Thank you for reading.