Yahoo Finance What Did Keystone Law Group's (LON:KEYS) CEO Take Home Last Year?
James Knight is the CEO of Keystone Law Group plc (LON:KEYS), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Keystone Law Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Keystone Law Group
How Does Total Compensation For James Knight Compare With Other Companies In The Industry?
At the time of writing, our data shows that Keystone Law Group plc has a market capitalization of UK£159m, and reported total annual CEO compensation of UK£322k for the year to January 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of UK£310.0k, makes up a huge portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the industry with market capitalizations between UK£74m and UK£295m, we discovered that the median CEO total compensation of that group was UK£310k. So it looks like Keystone Law Group compensates James Knight in line with the median for the industry. What's more, James Knight holds UK£54m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£310k | UK£300k | 96% |
Other | UK£12k | UK£15k | 4% |
Total Compensation | UK£322k | UK£315k | 100% |
Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. Investors will find it interesting that Keystone Law Group pays the bulk of its rewards through a traditional salary, instead of 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.
Keystone Law Group plc's Growth
Keystone Law Group plc has reduced its earnings per share by 71% a year over the last three years. It achieved revenue growth of 12% over the last year.
Few shareholders would be pleased to read that EPS have declined. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Keystone Law Group plc Been A Good Investment?
Boasting a total shareholder return of 143% over three years, Keystone Law Group plc 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.
To Conclude...
James receives almost all of their compensation through a salary. As previously discussed, James is compensated close to the median for companies of its size, and which belong to the same industry. Some investors may take issue with this, especially considering shrinking EPS for the past three years. On the flip side, shareholder returns have been strong over the same time, which is certainly a positive sign. We're not saying CEO compensation is too generous, but shareholders will probably want to see an increase in EPS before agreeing the business should pay any more.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Keystone Law Group that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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