Kuat Oraziman has been the CEO of Caspian Sunrise plc (LON:CASP) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Caspian Sunrise pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Caspian Sunrise

How Does Total Compensation For Kuat Oraziman Compare With Other Companies In The Industry?

According to our data, Caspian Sunrise plc has a market capitalization of UK£40m, and paid its CEO total annual compensation worth US$171k over the year to December 2019. That's a notable increase of 39% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$171k.

On comparing similar-sized companies in the industry with market capitalizations below UK£154m, we found that the median total CEO compensation was US$375k. Accordingly, Caspian Sunrise pays its CEO under the industry median. What's more, Kuat Oraziman holds UK£14m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. Speaking on a company level, Caspian Sunrise prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Caspian Sunrise plc's Growth

Caspian Sunrise plc has seen its earnings per share (EPS) increase by 36% a year over the past three years. Its revenue is up 27% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Caspian Sunrise plc Been A Good Investment?

With a three year total loss of 86% for the shareholders, Caspian Sunrise plc would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Caspian Sunrise rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Kuat is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Caspian Sunrise that you should be aware of before investing.

Important note: Caspian Sunrise is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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