Yahoo Finance How Much is Geospace Technologies Corporation's (NASDAQ:GEOS) CEO Getting Paid?
Rick Wheeler has been the CEO of Geospace Technologies Corporation (NASDAQ:GEOS) since 2014. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Geospace Technologies
How Does Rick Wheeler's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Geospace Technologies Corporation has a market cap of US$168m, and reported total annual CEO compensation of US$596k for the year to September 2019. That's a fairly small increase of 4.4% on year before. While we always look at total compensation first, we note that the salary component is less, at US$322k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.
Most shareholders would consider it a positive that Rick Wheeler takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Geospace Technologies has changed over time.
Is Geospace Technologies Corporation Growing?
Over the last three years Geospace Technologies Corporation has grown its earnings per share (EPS) by an average of 68% per year (using a line of best fit). It achieved revenue growth of 31% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I 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 Geospace Technologies Corporation Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in Geospace Technologies Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Geospace Technologies Corporation is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Rick Wheeler is generously paid, it would be good to see an improvement in business performance before too an increase in pay. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. So you may want to check if insiders are buying Geospace Technologies shares with their own money (free access).
Important note: Geospace Technologies may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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