G. Meier has been the CEO of Superior Drilling Products, Inc. (NYSEMKT:SDPI) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For G. Meier Compare With Other Companies In The Industry?
According to our data, Superior Drilling Products, Inc. has a market capitalization of US$11m, and paid its CEO total annual compensation worth US$1.2m over the year to December 2019. Notably, that's an increase of 17% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$475k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.6m. From this we gather that G. Meier is paid around the median for CEOs in the industry. Furthermore, G. Meier directly owns US$608k worth of shares in the company.
Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. According to our research, Superior Drilling Products has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Superior Drilling Products, Inc.'s Growth
Over the past three years, Superior Drilling Products, Inc. has seen its earnings per share (EPS) grow by 57% per year. It saw its revenue drop 5.8% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Superior Drilling Products, Inc. Been A Good Investment?
Given the total shareholder loss of 41% over three years, many shareholders in Superior Drilling Products, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, G. is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 4 warning signs for Superior Drilling Products that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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