John Sottile became the CEO of The Goldfield Corporation (NYSEMKT:GV) in 1983. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does John Sottile's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that The Goldfield Corporation has a market cap of US$68m, and reported total annual CEO compensation of US$1.4m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$697k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$530k.
As you can see, John Sottile is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean The Goldfield Corporation is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Goldfield has changed over time.
Is The Goldfield Corporation Growing?
Over the last three years The Goldfield Corporation has shrunk its earnings per share by an average of 39% per year (measured with a line of best fit). It achieved revenue growth of 32% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has The Goldfield Corporation Been A Good Investment?
Since shareholders would have lost about 38% over three years, some The Goldfield Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by The Goldfield Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. So you may want to check if insiders are buying Goldfield shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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