Yahoo Finance The Compensation For Kelly Partners Group Holdings Limited's (ASX:KPG) CEO Looks Deserved And Here's Why
The performance at Kelly Partners Group Holdings Limited (ASX:KPG) has been quite strong recently and CEO Brett Kelly has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 15 November 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Kelly Partners Group Holdings
How Does Total Compensation For Brett Kelly Compare With Other Companies In The Industry?
At the time of writing, our data shows that Kelly Partners Group Holdings Limited has a market capitalization of AU$212m, and reported total annual CEO compensation of AU$429k for the year to June 2022. That's slightly lower by 6.4% over the previous year. In particular, the salary of AU$338.3k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under AU$306m, the reported median total CEO compensation was AU$467k. So it looks like Kelly Partners Group Holdings compensates Brett Kelly in line with the median for the industry. Furthermore, Brett Kelly directly owns AU$107m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$338k | AU$338k | 79% |
Other | AU$91k | AU$121k | 21% |
Total Compensation | AU$429k | AU$459k | 100% |
Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. It's interesting to note that Kelly Partners Group Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Kelly Partners Group Holdings Limited's Growth Numbers
Kelly Partners Group Holdings Limited has seen its earnings per share (EPS) increase by 32% a year over the past three years. It achieved revenue growth of 33% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Kelly Partners Group Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 432% over three years, Kelly Partners Group Holdings Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Kelly Partners Group Holdings that investors should think about before committing capital to this stock.
Switching gears from Kelly Partners Group Holdings, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
