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Key Insights

• Kogan.com's Annual General Meeting to take place on 22nd of November

• CEO Ruslan Kogan's total compensation includes salary of AU$423.5k

• The total compensation is 2,855% higher than the average for the industry

• Over the past three years, Kogan.com's EPS fell by 96% and over the past three years, the total loss to shareholders 75%

Kogan.com Ltd (ASX:KGN) has not performed well recently and CEO Ruslan Kogan will probably need to up their game. At the upcoming AGM on 22nd of November, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Kogan.com

Comparing Kogan.com Ltd's CEO Compensation With The Industry

According to our data, Kogan.com Ltd has a market capitalization of AU$486m, and paid its CEO total annual compensation worth AU$17m over the year to June 2023. Notably, that's an increase of 13% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$424k.

On comparing similar companies from the Australian Multiline Retail industry with market caps ranging from AU$306m to AU$1.2b, we found that the median CEO total compensation was AU$581k. Hence, we can conclude that Ruslan Kogan is remunerated higher than the industry median. Furthermore, Ruslan Kogan directly owns AU$75m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 37% of total compensation represents salary and 63% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Kogan.com paid Ruslan Kogan a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Kogan.com Ltd's Growth

Kogan.com Ltd has reduced its earnings per share by 96% a year over the last three years. In the last year, its revenue is down 32%.

Overall this is not a very positive result for shareholders. 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.