How Much Is SKS Technologies Group's (ASX:SKS) CEO Getting Paid?

Peter Jinks became the CEO of SKS Technologies Group Limited (ASX:SKS) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. 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 SKS Technologies Group

Comparing SKS Technologies Group Limited's CEO Compensation With the industry

At the time of writing, our data shows that SKS Technologies Group Limited has a market capitalization of AU$18m, and reported total annual CEO compensation of AU$211k for the year to June 2020. Notably, that's a decrease of 15% over the year before. We note that the salary portion, which stands at AU$203.1k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below AU$265m, reported a median total CEO compensation of AU$177k. This suggests that SKS Technologies Group remunerates its CEO largely in line with the industry average. What's more, Peter Jinks holds AU$2.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. SKS Technologies Group is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at SKS Technologies Group Limited's Growth Numbers

Over the past three years, SKS Technologies Group Limited has seen its earnings per share (EPS) grow by 58% per year. Its revenue is up 3.9% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has SKS Technologies Group Limited Been A Good Investment?

With a three year total loss of 18% for the shareholders, SKS Technologies Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

SKS Technologies Group pays its CEO a majority of compensation through a salary. As previously discussed, Peter is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for SKS Technologies Group (1 can't be ignored!) that you should be aware of before investing here.

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

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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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