Rick Wheeler has been the CEO of Geospace Technologies Corporation (NASDAQ:GEOS) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Geospace Technologies pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Geospace Technologies
How Does Total Compensation For Rick Wheeler Compare With Other Companies In The Industry?
At the time of writing, our data shows that Geospace Technologies Corporation has a market capitalization of US$123m, and reported total annual CEO compensation of US$583k for the year to September 2020. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at US$339.2k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.5m. This suggests that Rick Wheeler is paid below the industry median. Moreover, Rick Wheeler also holds US$1.1m worth of Geospace Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$339k | US$322k | 58% |
| Other | US$244k | US$274k | 42% |
| Total Compensation | US$583k | US$596k | 100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that Geospace Technologies pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Geospace Technologies Corporation's Growth
Over the past three years, Geospace Technologies Corporation has seen its earnings per share (EPS) grow by 79% per year. In the last year, its revenue is down 8.4%.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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?
Given the total shareholder loss of 40% over three years, many shareholders in Geospace Technologies Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
As previously discussed, Rick is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Rick is compensated fairly. But shareholders will likely want to hold off on any raise for Rick until investor returns are positive.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Geospace Technologies that investors should be aware of in a dynamic business environment.
Important note: Geospace Technologies 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 NasdaqGS:GEOS
Geospace Technologies
Designs and manufactures instruments and equipment used in the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs.
Flawless balance sheet and overvalued.
