Yahoo Finance Is K3 Business Technology Group plc's (LON:KBT) CEO Pay Fair?
In 2016 Adalsteinn Valdimarsson was appointed CEO of K3 Business Technology Group plc (LON:KBT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for K3 Business Technology Group
How Does Adalsteinn Valdimarsson's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that K3 Business Technology Group plc has a market cap of UK£72m, and reported total annual CEO compensation of UK£339k for the year to November 2018. While we always look at total compensation first, we note that the salary component is less, at UK£309k. We examined a group of similar sized companies, with market capitalizations of below UK£154m. The median CEO total compensation in that group is UK£248k.
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?
On average over the last three years, K3 Business Technology Group plc has shrunk earnings per share by 17% each year (measured with a line of best fit). In the last year, its revenue is down 5.1%.
Few shareholders would be pleased to read that earnings per share are lower over three years. 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has K3 Business Technology Group plc Been A Good Investment?
With a three year total loss of 45%, K3 Business Technology Group plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at K3 Business Technology Group plc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling K3 Business Technology Group shares (free trial).
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.
