Stephen Jumper became the CEO of Dawson Geophysical Company (NASDAQ:DWSN) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Dawson Geophysical pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Stephen Jumper Compare With Other Companies In The Industry?
According to our data, Dawson Geophysical Company has a market capitalization of US$52m, and paid its CEO total annual compensation worth US$644k over the year to December 2019. Notably, that's a decrease of 26% over the year before. Notably, the salary which is US$600.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.7m. In other words, Dawson Geophysical pays its CEO lower than the industry median. Furthermore, Stephen Jumper directly owns US$542k worth of shares in the company.
On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. Dawson Geophysical is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Dawson Geophysical Company's Growth Numbers
Dawson Geophysical Company's earnings per share (EPS) grew 39% per year over the last three years. Its revenue is down 3.0% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Dawson Geophysical Company Been A Good Investment?
Given the total shareholder loss of 49% over three years, many shareholders in Dawson Geophysical Company are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we noted earlier, Dawson Geophysical pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Importantly though, the company has impressed with its EPS growth over three years. Although we would've liked to see positive investor returns, it would be bold of us to criticize CEO compensation when EPS are up. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Dawson Geophysical that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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