In This Article:
The CEO of Geodrill Limited (TSE:GEO) is Dave Harper. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Geodrill
How Does Dave Harper's Compensation Compare With Similar Sized Companies?
Our data indicates that Geodrill Limited is worth CA$70m, and total annual CEO compensation was reported as US$1.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$425k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$123k.
As you can see, Dave Harper is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Geodrill Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Geodrill, below.
Is Geodrill Limited Growing?
Geodrill Limited has reduced its earnings per share by an average of 41% a year, over the last three years (measured with a line of best fit). Its revenue is down 6.5% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Geodrill Limited Been A Good Investment?
Given the total loss of 34% over three years, many shareholders in Geodrill Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Geodrill Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Geodrill insiders are buying or selling shares.