Key Things To Understand About Kontrol Energy's (CSE:KNR) CEO Pay Cheque

The CEO of Kontrol Energy Corp. (CSE:KNR) is Paul Ghezzi, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Kontrol Energy.

View our latest analysis for Kontrol Energy

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

Our data indicates that Kontrol Energy Corp. has a market capitalization of CA$119m, and total annual CEO compensation was reported as CA$214k for the year to December 2019. Notably, that's an increase of 58% over the year before. Notably, the salary which is CA$210.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below CA$257m, we found that the median total CEO compensation was CA$344k. Accordingly, Kontrol Energy pays its CEO under the industry median. What's more, Paul Ghezzi holds CA$35m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. Investors will find it interesting that Kontrol Energy pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Kontrol Energy Corp.'s Growth Numbers

Over the last three years, Kontrol Energy Corp. has shrunk its earnings per share by 9.6% per year. Its revenue is down 21% 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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Kontrol Energy Corp. Been A Good Investment?

Boasting a total shareholder return of 254% over three years, Kontrol Energy Corp. has done well by shareholders. 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.

In Summary...

Kontrol Energy pays its CEO a majority of compensation through a salary. As previously discussed, Paul is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. And while EPS growth is negative, shareholder returns have been healthy recently. So, while it would be nice to have better EPS growth, our analysis suggests CEO compensation is quite modest.

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 Kontrol Energy that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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