Here's What We Think About Kinepolis Group's (EBR:KIN) CEO Pay

Eddy Duquenne has been the CEO of Kinepolis Group NV (EBR:KIN) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Kinepolis Group.

See our latest analysis for Kinepolis Group

Comparing Kinepolis Group NV's CEO Compensation With the industry

Our data indicates that Kinepolis Group NV has a market capitalization of €957m, and total annual CEO compensation was reported as €1.2m for the year to December 2019. That's a modest increase of 3.7% on the prior year. In particular, the salary of €725.2k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from €337m to €1.3b, we found that the median CEO total compensation was €739k. Hence, we can conclude that Eddy Duquenne is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. There isn't a significant difference between Kinepolis Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Kinepolis Group NV's Growth Numbers

Kinepolis Group NV has reduced its earnings per share by 47% a year over the last three years. Its revenue is down 14% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Kinepolis Group NV Been A Good Investment?

With a three year total loss of 40% for the shareholders, Kinepolis Group NV would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Eddy is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. To make matters worse, EPS growth has also been negative during this period. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Kinepolis Group (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: Kinepolis Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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