Our Take On Konekt Limited’s (ASX:KKT) CEO Salary
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In 2012 Damian Banks was appointed CEO of Konekt Limited (ASX:KKT). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Konekt
How Does Damian Banks’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Konekt Limited has a market cap of AU$26m, and is paying total annual CEO compensation of AU$636k. (This is based on the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$410k. We took a group of companies with market capitalizations below AU$281m, and calculated the median CEO compensation to be AU$362k.
It would therefore appear that Konekt Limited pays Damian Banks 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 Konekt, below.
Is Konekt Limited Growing?
Over the last three years Konekt Limited has shrunk its earnings per share by an average of 53% per year (measured with a line of best fit). In the last year, its revenue is up 52%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Konekt Limited Been A Good Investment?
Since shareholders would have lost about 39% over three years, some Konekt Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We examined the amount Konekt Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if Konekt insiders are buying or selling shares.
Important note: Konekt 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. On rare occasion, data errors may occur. Thank you for reading.
