How Much is Kintavar Exploration's (CVE:KTR) CEO Getting Paid?

This article will reflect on the compensation paid to Kiril Mugerman who has served as CEO of Kintavar Exploration Inc. (CVE:KTR) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Kintavar Exploration

How Does Total Compensation For Kiril Mugerman Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kintavar Exploration Inc. has a market capitalization of CA$7.8m, and reported total annual CEO compensation of CA$74k for the year to December 2019. That's a notable decrease of 32% on last year. Notably, the salary of CA$74k is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below CA$259m, reported a median total CEO compensation of CA$156k. Accordingly, Kintavar Exploration pays its CEO under the industry median.

Speaking on an industry level, nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. Speaking on a company level, Kintavar Exploration prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Kintavar Exploration Inc.'s Growth

Kintavar Exploration Inc. has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is up 502% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Kintavar Exploration Inc. Been A Good Investment?

Since shareholders would have lost about 23% over three years, some Kintavar Exploration Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Kintavar Exploration pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Kiril is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However we must not forget that the EPS growth has been very strong over three years. Considering EPS are on the up, we would say Kiril is compensated fairly. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Kintavar Exploration you should be aware of, and 3 of them make us uncomfortable.

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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