Ron Heeks became the CEO of Geopacific Resources Limited (ASX:GPR) in 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ron Heeks’s Compensation Compare With Similar Sized Companies?
According to our data, Geopacific Resources Limited has a market capitalization of AU$31m, and pays its CEO total annual compensation worth AU$330k. (This figure is for the year to 2017). Notably, the salary of AU$330k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under AU$282m, and the median CEO compensation was AU$368k.
So Ron Heeks is paid around the average of 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.
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 (using a line of best fit). In the last year, its revenue is up 106%.
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 Geopacific Resources Limited Been A Good Investment?
Since shareholders would have lost about 57% over three years, some Geopacific Resources Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Ron Heeks is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Geopacific Resources.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.