Karl Kenny is the CEO of Kraken Robotics Inc. (CVE:PNG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Karl Kenny’s Compensation Compare With Similar Sized Companies?
According to our data, Kraken Robotics Inc. has a market capitalization of CA$103m, and pays its CEO total annual compensation worth CA$190k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$150k. We looked at a group of companies with market capitalizations under CA$267m, and the median CEO total compensation was CA$140k.
Thus we can conclude that Karl Kenny receives more in total compensation than the median of a group of companies in the same market, and of similar size to Kraken Robotics Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Kraken Robotics has changed from year to year.
Is Kraken Robotics Inc. Growing?
Over the last three years Kraken Robotics Inc. has grown its earnings per share (EPS) by an average of 2.6% per year (using a line of best fit). It achieved revenue growth of 216% over the last year.
It’s hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kraken Robotics Inc. Been A Good Investment?
I think that the total shareholder return of 233%, over three years, would leave most Kraken Robotics Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Kraken Robotics Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kraken Robotics (free visualization of insider trades).
Important note: Kraken Robotics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.