Stephen Jumper has been the CEO of Dawson Geophysical Company (NASDAQ:DWSN) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Stephen Jumper's Compensation Compare With Similar Sized Companies?
Our data indicates that Dawson Geophysical Company is worth US$31m, and total annual CEO compensation was reported as US$644k for the year to December 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$600k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$593k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Dawson Geophysical stands. On a sector level, around 21% of total compensation represents salary and 79% is other remuneration. Dawson Geophysical pays out 93% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.
So Stephen Jumper is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see a visual representation of the CEO compensation at Dawson Geophysical, below.
Is Dawson Geophysical Company Growing?
On average over the last three years, Dawson Geophysical Company has seen earnings per share (EPS) move in a favourable direction by 31% each year (using a line of best fit). Its revenue is down 14% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Dawson Geophysical Company Been A Good Investment?
Since shareholders would have lost about 67% over three years, some Dawson Geophysical Company shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Stephen Jumper is paid around what is normal for the leaders of comparable size companies.
We like that the company is growing EPS, 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. Shifting gears from CEO pay for a second, we've picked out 2 warning signs for Dawson Geophysical that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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