We Discuss Why Geospace Technologies Corporation's (NASDAQ:GEOS) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

The underwhelming performance at Geospace Technologies Corporation (NASDAQ:GEOS) recently has probably not pleased shareholders. At the upcoming AGM on 09 February 2023, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for Geospace Technologies

Comparing Geospace Technologies Corporation's CEO Compensation With The Industry

According to our data, Geospace Technologies Corporation has a market capitalization of US$65m, and paid its CEO total annual compensation worth US$503k over the year to September 2022. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at US$350.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the American Energy Services industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.3m. This suggests that Rick Wheeler is paid below the industry median. What's more, Rick Wheeler holds US$538k worth of shares in the company in their own name.

Component	2022	2021	Proportion (2022)
Salary	US$350k	US$305k	70%
Other	US$153k	US$189k	30%
Total Compensation	US$503k	US$495k	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Geospace Technologies pays out 70% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Geospace Technologies Corporation's Growth

Geospace Technologies Corporation has reduced its earnings per share by 48% a year over the last three years. Its revenue is down 5.9% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. 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 Geospace Technologies Corporation Been A Good Investment?

With a total shareholder return of -64% over three years, Geospace Technologies Corporation shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Geospace Technologies you should be aware of, and 1 of them shouldn't be ignored.

Switching gears from Geospace Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.