Key Insights

Karoon Energy's Annual General Meeting to take place on 22nd of November CEO Julian Fowles' total compensation includes salary of US$568.2k The overall pay is 60% above the industry average Karoon Energy's EPS grew by 97% over the past three years  while total shareholder return over the past three years was 142%

Performance at Karoon Energy Ltd (ASX:KAR) has been reasonably good and CEO Julian Fowles has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of November. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Karoon Energy

Comparing Karoon Energy Ltd's CEO Compensation With The Industry

According to our data, Karoon Energy Ltd has a market capitalization of AU$1.2b, and paid its CEO total annual compensation worth US$1.5m over the year to June 2023. That's a notable increase of 17% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$568k.

On examining similar-sized companies in the Australian Oil and Gas industry with market capitalizations between AU$618m and AU$2.5b, we discovered that the median CEO total compensation of that group was US$936k. Accordingly, our analysis reveals that Karoon Energy Ltd pays Julian Fowles north of the industry median.

Component 2023 2022 Proportion (2023) Salary US$568k US$561k 38% Other US$933k US$726k 62% Total Compensation US$1.5m US$1.3m 100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Karoon Energy sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

 ceo-compensation

Karoon Energy Ltd's Growth

Karoon Energy Ltd's earnings per share (EPS) grew 97% per year over the last three years. In the last year, its revenue is up 47%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Karoon Energy Ltd Been A Good Investment?

We think that the total shareholder return of 142%, over three years, would leave most Karoon Energy Ltd shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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. We've identified 2 warning signs for Karoon Energy that investors should be aware of in a dynamic business environment.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.