Is Kina Petroleum Corporation’s (ASX:KPL) CEO Paid At A Competitive Rate?

The CEO of Kina Petroleum Corporation (ASX:KPL) is Richard Schroder. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Kina Petroleum

How Does Richard Schroder’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Kina Petroleum Corporation has a market cap of AU$22m, and is paying total annual CEO compensation of US$230k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$207k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$255k.

That means Richard Schroder receives fairly typical remuneration for the CEO of a company that size. 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 Kina Petroleum, below.

ASX:KPL CEO Compensation, April 15th 2019
ASX:KPL CEO Compensation, April 15th 2019

Is Kina Petroleum Corporation Growing?

Over the last three years Kina Petroleum Corporation has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). In the last year, its revenue is up 51%.

The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Kina Petroleum Corporation Been A Good Investment?

Given the total loss of 23% over three years, many shareholders in Kina Petroleum Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Richard Schroder is paid around what is normal the leaders of comparable size companies.

The per share growth could be better, in our view. And we think the shareholder returns – over three years – have been underwhelming. So many would argue that the CEO is certainly not underpaid. So you may want to check if insiders are buying Kina Petroleum shares with their own money (free access).

If you want to buy a stock that is better than Kina Petroleum, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.