How Much is Kardan's (TLV:KRNV-L) CEO Getting Paid?

This article will reflect on the compensation paid to Ariel Hasson who has served as CEO of Kardan N.V. (TLV:KRNV-L) since 2016. This analysis will also assess whether Kardan pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Kardan

How Does Total Compensation For Ariel Hasson Compare With Other Companies In The Industry?

Our data indicates that Kardan N.V. has a market capitalization of ₪1.8m, and total annual CEO compensation was reported as €361k for the year to December 2019. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €361k.

For comparison, other companies in the industry with market capitalizations below ₪652m, reported a median total CEO compensation of €367k. So it looks like Kardan compensates Ariel Hasson in line with the median for the industry.

Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. On a company level, Kardan prefers to reward its CEO through a salary, opting not to pay Ariel Hasson through 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 Kardan N.V.'s Growth Numbers

Over the last three years, Kardan N.V. has shrunk its earnings per share by 5.5% per year. Its revenue is down 4.8% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Kardan N.V. Been A Good Investment?

Given the total shareholder loss of 98% over three years, many shareholders in Kardan N.V. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Kardan rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Ariel is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Kardan we think you should know about.

Switching gears from Kardan, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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