The CEO of Jupiter Energy Limited (ASX:JPR) is Geoff Gander, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Jupiter Energy.
Check out our latest analysis for Jupiter Energy
How Does Total Compensation For Geoff Gander Compare With Other Companies In The Industry?
Our data indicates that Jupiter Energy Limited has a market capitalization of AU$7.4m, and total annual CEO compensation was reported as AU$329k for the year to June 2020. Notably, that's a decrease of 16% over the year before. Notably, the salary which is AU$289.1k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below AU$257m, reported a median total CEO compensation of AU$351k. So it looks like Jupiter Energy compensates Geoff Gander in line with the median for the industry.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$289k | AU$313k | 88% |
| Other | AU$40k | AU$77k | 12% |
| Total Compensation | AU$329k | AU$390k | 100% |
Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. It's interesting to note that Jupiter Energy pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Jupiter Energy Limited's Growth Numbers
Over the last three years, Jupiter Energy Limited has shrunk its earnings per share by 70% per year. In the last year, its revenue is down 37%.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Jupiter Energy Limited Been A Good Investment?
Since shareholders would have lost about 49% over three years, some Jupiter Energy Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As previously discussed, Geoff is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Jupiter Energy you should be aware of, and 3 of them are a bit concerning.
Important note: Jupiter Energy is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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. 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.
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About ASX:JPR
Jupiter Energy
Engages in the exploration, appraisal, development, and production of oil and gas properties in Kazakhstan.
Moderate with mediocre balance sheet.
