It's Unlikely That Korvest Ltd's (ASX:KOV) CEO Will See A Huge Pay Rise This Year

CEO Chris Hartwig has done a decent job of delivering relatively good performance at Korvest Ltd (ASX:KOV) recently. As shareholders go into the upcoming AGM on 22 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Korvest

Comparing Korvest Ltd's CEO Compensation With the industry

Our data indicates that Korvest Ltd has a market capitalization of AU$73m, and total annual CEO compensation was reported as AU$637k for the year to June 2021. Notably, that's an increase of 20% over the year before. Notably, the salary which is AU$332.4k, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below AU$270m, we found that the median total CEO compensation was AU$363k. Accordingly, our analysis reveals that Korvest Ltd pays Chris Hartwig north of the industry median. What's more, Chris Hartwig holds AU$551k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	AU$332k	AU$318k	52%
Other	AU$305k	AU$213k	48%
Total Compensation	AU$637k	AU$531k	100%

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. In Korvest's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Korvest Ltd's Growth Numbers

Korvest Ltd's earnings per share (EPS) grew 62% per year over the last three years. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Korvest Ltd Been A Good Investment?

We think that the total shareholder return of 197%, over three years, would leave most Korvest Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 Korvest that investors should look into moving forward.

Switching gears from Korvest, 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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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