Greg Pawson has been the CEO of Kina Securities Limited (ASX:KSL) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Kina Securities.

See our latest analysis for Kina Securities

How Does Total Compensation For Greg Pawson Compare With Other Companies In The Industry?

According to our data, Kina Securities Limited has a market capitalization of AU$259m, and paid its CEO total annual compensation worth K1.9m over the year to December 2019. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is K1.44m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from AU$133m to AU$531m, we found that the median CEO total compensation was K2.7m. In other words, Kina Securities pays its CEO lower than the industry median. What's more, Greg Pawson holds AU$236k worth of shares in the company in their own name.

Component 2019 2018 Proportion (2019) Salary K1.4m K1.5m 76% Other K454k K447k 24% Total Compensation K1.9m K1.9m 100%

Speaking on an industry level, nearly 65% of total compensation represents salary, while the remainder of 35% is other remuneration. According to our research, Kina Securities has allocated a higher percentage of pay to salary in comparison to the wider industry. 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. ceo-compensation

A Look at Kina Securities Limited's Growth Numbers

Kina Securities Limited's earnings per share (EPS) grew 38% per year over the last three years. It achieved revenue growth of 56% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..



Has Kina Securities Limited Been A Good Investment?

We think that the total shareholder return of 65%, over three years, would leave most Kina Securities Limited shareholders smiling. 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...

As previously discussed, Greg is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which are concerning) in Kina Securities we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this freelist 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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