In This Article:
Richard Schroder is the CEO of Kina Petroleum Limited (ASX:KPL). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Kina Petroleum
How Does Richard Schroder’s Compensation Compare With Similar Sized Companies?
Our data indicates that Kina Petroleum Limited is worth AU$18m, and total annual CEO compensation is US$230k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$207k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$251k.
That means Richard Schroder receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Kina Petroleum has changed from year to year.
Is Kina Petroleum Limited Growing?
Kina Petroleum Limited has increased its earnings per share (EPS) by an average of 9.4% a year, over the last three years (using a line of best fit). It saw its revenue drop -94% over the last year.
I would prefer it if there was revenue growth, but I’m happy with the EPS growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch. Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Kina Petroleum Limited Been A Good Investment?
With a three year total loss of 54%, Kina Petroleum Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Richard Schroder is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kina Petroleum.