Jim Park became the CEO of GeoPark Limited (NYSE:GPRK) in 2002. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jim Park's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that GeoPark Limited has a market cap of US$1.2b, and is paying total annual CEO compensation of US$2.3m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
So Jim Park is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at GeoPark, below.
Is GeoPark Limited Growing?
GeoPark Limited has increased its earnings per share (EPS) by an average of 121% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 62%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has GeoPark Limited Been A Good Investment?
I think that the total shareholder return of 464%, over three years, would leave most GeoPark Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Jim Park is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling GeoPark shares (free trial).
Important note: GeoPark may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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