Our View On St. Joe's (NYSE:JOE) CEO Pay

Simply Wall St
October 13, 2020

This article will reflect on the compensation paid to Jorge Gonzalez who has served as CEO of The St. Joe Company (NYSE:JOE) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for St. Joe.

View our latest analysis for St. Joe

Comparing The St. Joe Company's CEO Compensation With the industry

Our data indicates that The St. Joe Company has a market capitalization of US$1.6b, and total annual CEO compensation was reported as US$1.0m for the year to December 2019. We note that's an increase of 15% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$400k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$8.8m. That is to say, Jorge Gonzalez is paid under the industry median. Furthermore, Jorge Gonzalez directly owns US$567k worth of shares in the company.

Component20192018Proportion (2019)
Salary US$400k US$400k 38%
Other US$642k US$506k 62%
Total CompensationUS$1.0m US$906k100%

On an industry level, around 29% of total compensation represents salary and 71% is other remuneration. St. Joe is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NYSE:JOE CEO Compensation October 13th 2020

The St. Joe Company's Growth

Over the past three years, The St. Joe Company has seen its earnings per share (EPS) grow by 25% per year. It achieved revenue growth of 42% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 The St. Joe Company Been A Good Investment?

Boasting a total shareholder return of 44% over three years, The St. Joe Company has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As previously discussed, Jorge is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Considering robust EPS growth, we believe Jorge to be modestly paid. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for St. Joe (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from St. Joe, 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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