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In 2015 Jorge Gonzalez was appointed CEO of The St Joe Company (NYSE:JOE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Jorge Gonzalez’s Compensation Compare With Similar Sized Companies?
Our data indicates that The St Joe Company is worth US$934m, and total annual CEO compensation is US$895k. That’s a modest increase of 5.3% on the prior year year. 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$2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at St. Joe has changed from year to year.
Is The St Joe Company Growing?
Over the last three years The St Joe Company has grown its earnings per share (EPS) by an average of 107% per year. In the last year, its revenue is up 39%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has The St Joe Company Been A Good Investment?
With a three year total loss of 23%, The St Joe Company would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
The St Joe Company is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. So while we don’t think, Jorge Gonzalez is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shareholders may want to check for free if The St Joe Company insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.