We Think Shareholders Are Less Likely To Approve A Large Pay Rise For K&S Corporation Limited's (ASX:KSC) CEO For Now

Under the guidance of CEO Paul Sarant, K&S Corporation Limited (ASX:KSC) has performed reasonably well recently. As shareholders go into the upcoming AGM on 29 November 2022, 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.

See our latest analysis for K&S

How Does Total Compensation For Paul Sarant Compare With Other Companies In The Industry?

At the time of writing, our data shows that K&S Corporation Limited has a market capitalization of AU$267m, and reported total annual CEO compensation of AU$1.1m for the year to June 2022. That's a slight decrease of 3.1% on the prior year. Notably, the salary which is AU$789.7k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between AU$152m and AU$607m, we discovered that the median CEO total compensation of that group was AU$230k. Hence, we can conclude that Paul Sarant is remunerated higher than the industry median. What's more, Paul Sarant holds AU$364k worth of shares in the company in their own name.

Component	2022	2021	Proportion (2022)
Salary	AU$790k	AU$775k	72%
Other	AU$305k	AU$354k	28%
Total Compensation	AU$1.1m	AU$1.1m	100%

Talking in terms of the industry, salary represented approximately 73% of total compensation out of all the companies we analyzed, while other remuneration made up 27% of the pie. K&S 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.

K&S Corporation Limited's Growth

Over the past three years, K&S Corporation Limited has seen its earnings per share (EPS) grow by 90% per year. In the last year, its revenue is up 13%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 K&S Corporation Limited Been A Good Investment?

We think that the total shareholder return of 41%, over three years, would leave most K&S Corporation Limited shareholders smiling. 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for K&S that you should be aware of before investing.

Switching gears from K&S, 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. 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.