In This Article:
Ron Heeks became the CEO of Geopacific Resources Limited (ASX:GPR) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Geopacific Resources
How Does Ron Heeks’s Compensation Compare With Similar Sized Companies?
According to our data, Geopacific Resources Limited has a market capitalization of AU$52m, and pays its CEO total annual compensation worth AU$330k. That’s a fairly small increase of 6.4% on year before. We examined a group of similar sized companies, with market capitalizations of below AU$283m. The median CEO compensation in that group is AU$357k.
That means Ron Heeks 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 Geopacific Resources has changed over time.
Is Geopacific Resources Limited Growing?
On average over the last three years, Geopacific Resources Limited has grown earnings per share (EPS) by 14% each year. It achieved revenue growth of 106% 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.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Geopacific Resources Limited Been A Good Investment?
Since shareholders would have lost about 50% over three years, some Geopacific Resources Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Ron Heeks is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. So you may want to check if insiders are buying Geopacific Resources Limited shares with their own money (free access).