John Sergeant has been the CEO of Kangaroo Island Plantation Timbers Limited (ASX:KPT) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Kangaroo Island Plantation Timbers

How Does John Sergeant’s Compensation Compare With Similar Sized Companies?

Our data indicates that Kangaroo Island Plantation Timbers Limited is worth AU$93m, and total annual CEO compensation is AU$325k. (This is based on the year to 2018). That’s below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at AU$170k. We examined a group of similar sized companies, with market capitalizations of below AU$277m. The median CEO compensation in that group is AU$363k.

That means John Sergeant receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Kangaroo Island Plantation Timbers has changed over time.

Is Kangaroo Island Plantation Timbers Limited Growing?

Over the last three years Kangaroo Island Plantation Timbers Limited has grown its earnings per share (EPS) by an average of 53% per year. It achieved revenue growth of 24% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Kangaroo Island Plantation Timbers Limited Been A Good Investment?

Most shareholders would probably be pleased with Kangaroo Island Plantation Timbers Limited for providing a total return of 56% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

John Sergeant is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Kangaroo Island Plantation Timbers shares with their own money (free access).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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.