Yahoo Finance What Did K3 Business Technology Group plc's (LON:KBT) CEO Take Home Last Year?
In 2016 Adalsteinn Valdimarsson was appointed CEO of K3 Business Technology Group plc (LON:KBT). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for K3 Business Technology Group
How Does Adalsteinn Valdimarsson's Compensation Compare With Similar Sized Companies?
According to our data, K3 Business Technology Group plc has a market capitalization of UK£97m, and pays its CEO total annual compensation worth UK£359k. (This number is for the twelve months until November 2017). Notably, the salary of UK£457k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below UK£153m. The median CEO total compensation in that group is UK£238k.
It would therefore appear that K3 Business Technology Group plc pays Adalsteinn Valdimarsson more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at K3 Business Technology Group, below.
Is K3 Business Technology Group plc Growing?
Over the last three years K3 Business Technology Group plc has shrunk its earnings per share by an average of 81% per year (measured with a line of best fit). Revenue was pretty flat on last year.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has K3 Business Technology Group plc Been A Good Investment?
Given the total loss of 33% over three years, many shareholders in K3 Business Technology Group plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount K3 Business Technology Group plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at K3 Business Technology Group.
Important note: K3 Business Technology Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
