In 2015 Stephen Jumper was appointed CEO of Dawson Geophysical Company (NASDAQ:DWSN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Stephen Jumper’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Dawson Geophysical Company has a market cap of US$72m, and is paying total annual CEO compensation of US$581k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$446k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$419k.
As you can see, Stephen Jumper is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Dawson Geophysical Company is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Dawson Geophysical, below.
Is Dawson Geophysical Company Growing?
Over the last three years Dawson Geophysical Company has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). In the last year, its revenue is down -1.5%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Dawson Geophysical Company Been A Good Investment?
Since shareholders would have lost about 28% over three years, some Dawson Geophysical Company shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Dawson Geophysical Company pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Dawson Geophysical shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.