Jim Park has been the CEO of GeoPark Limited (NYSE:GPRK) since 2002, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for GeoPark.
How Does Total Compensation For Jim Park Compare With Other Companies In The Industry?
According to our data, GeoPark Limited has a market capitalization of US$476m, and paid its CEO total annual compensation worth US$2.5m over the year to December 2019. That's a notable increase of 9.3% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$800k.
On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.9m. This suggests that Jim Park is paid more than the median for the industry. Furthermore, Jim Park directly owns US$65m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. According to our research, GeoPark has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at GeoPark Limited's Growth Numbers
GeoPark Limited has seen its earnings per share (EPS) increase by 18% a year over the past three years. Its revenue is down 22% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has GeoPark Limited Been A Good Investment?
Given the total shareholder loss of 4.5% over three years, many shareholders in GeoPark Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, GeoPark Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Jim is underpaid, in fact compensation is definitely on the higher side.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for GeoPark that investors should look into moving forward.
Switching gears from GeoPark, 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. 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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