Yahoo Finance Does Karoon Gas Australia Ltd’s (ASX:KAR) CEO Salary Reflect Performance?
Robert Hosking has been the CEO of Karoon Gas Australia Ltd (ASX:KAR) since 2014. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Karoon Gas Australia
How Does Robert Hosking’s Compensation Compare With Similar Sized Companies?
Our data indicates that Karoon Gas Australia Ltd is worth AU$248m, and total annual CEO compensation is AU$1.2m. Notably, that’s an increase of 22% over the year before. We looked at a group of companies with market capitalizations from AU$139m to AU$556m, and the median CEO compensation was AU$767k.
Thus we can conclude that Robert Hosking receives more in total compensation than the median of a group of companies in the same market, and of similar size to Karoon Gas Australia Ltd. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Karoon Gas Australia, below.
Is Karoon Gas Australia Ltd Growing?
Karoon Gas Australia Ltd has reduced its earnings per share by an average of 81% a year, over the last three years. Its revenue is down -17% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Karoon Gas Australia Ltd Been A Good Investment?
Given the total loss of 42% over three years, many shareholders in Karoon Gas Australia Ltd are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We examined the amount Karoon Gas Australia Ltd 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. Notably, the CEO remuneration is actually up on last year. In our opinion the CEO might be paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Karoon Gas Australia Ltd (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
