How Much Did Kin and Carta's (LON:KCT) CEO Pocket Last Year?

John Schwan became the CEO of Kin and Carta plc (LON:KCT) in 2018, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Kin and Carta pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Kin and Carta

Comparing Kin and Carta plc's CEO Compensation With the industry

According to our data, Kin and Carta plc has a market capitalization of UK£259m, and paid its CEO total annual compensation worth UK£419k over the year to July 2020. That's a notable decrease of 28% on last year. Notably, the salary which is UK£350.0k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from UK£144m to UK£575m, we found that the median CEO total compensation was UK£796k. In other words, Kin and Carta pays its CEO lower than the industry median. Moreover, John Schwan also holds UK£12m worth of Kin and Carta stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. It's interesting to note that Kin and Carta pays out a greater portion of remuneration through salary, compared to the industry. 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.

Kin and Carta plc's Growth

Kin and Carta plc has seen its earnings per share (EPS) increase by 41% a year over the past three years. In the last year, its revenue changed by just 0.4%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Kin and Carta plc Been A Good Investment?

Boasting a total shareholder return of 136% over three years, Kin and Carta plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we noted earlier, Kin and Carta pays its CEO lower than the norm for similar-sized companies belonging to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with John's performance.

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 1 warning sign for Kin and Carta that investors should think about before committing capital to this stock.

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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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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