Is Kaufman & Broad SA's (EPA:KOF) CEO Pay Fair?

Nordine Hachemi became the CEO of Kaufman & Broad SA (EPA:KOF) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Kaufman & Broad

How Does Nordine Hachemi's Compensation Compare With Similar Sized Companies?

According to our data, Kaufman & Broad SA has a market capitalization of €795m, and pays its CEO total annual compensation worth €4m. That's a notable increase of 114% on last year. We examined companies with market caps from €348m to €1.4b, and discovered that the median CEO compensation of that group was €364k.

Thus we can conclude that Nordine Hachemi receives more in total compensation than the median of a group of companies in the same market, and of similar size to Kaufman & Broad SA. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Kaufman & Broad has changed from year to year.

Is Kaufman & Broad SA Growing?

On average over the last three years, Kaufman & Broad SA has grown earnings per share (EPS) by 25% each year. It achieved revenue growth of 14% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Kaufman & Broad SA Been A Good Investment?

I think that the total shareholder return of 60%, over three years, would leave most Kaufman & Broad SA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at Kaufman & Broad SA with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Kaufman & Broad SA shares with their own money (free access).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.