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Our Take On Geopacific Resources Limited's (ASX:GPR) CEO Salary

Ron Heeks has been the CEO of Geopacific Resources Limited (ASX:GPR) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.

See our latest analysis for Geopacific Resources

How Does Ron Heeks's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Geopacific Resources Limited has a market cap of AU$40m, and reported total annual CEO compensation of AU$380k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at AU$330k. We looked at a group of companies with market capitalizations under AU$330m, and the median CEO total compensation was AU$395k.

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Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Geopacific Resources. Talking in terms of the sector, salary represented approximately 68% of total compensation out of all the companies we analysed, while other remuneration made up 32% of the pie. Geopacific Resources is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

So Ron Heeks receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 a visual representation of the CEO compensation at Geopacific Resources, below.

ASX:GPR CEO Compensation March 27th 2020
ASX:GPR CEO Compensation March 27th 2020

Is Geopacific Resources Limited Growing?

Over the last three years Geopacific Resources Limited has shrunk its earnings per share by an average of 37% per year (measured with a line of best fit). Its revenue is up 35% over last year.

Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Geopacific Resources Limited Been A Good Investment?

With a three year total loss of 77%, Geopacific Resources Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Ron Heeks is close enough to the median pay for a CEO of a similar sized company .

The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. On another note, Geopacific Resources has 6 warning signs (and 2 which don't sit too well with us) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.