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Jorge Gonzalez became the CEO of The St. Joe Company (NYSE:JOE) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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$1.1b, and total annual CEO compensation is US$906k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$400k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
A first glance this seems like a real positive for shareholders, since Jorge Gonzalez is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at St. Joe has changed over time.
Is The St. Joe Company Growing?
On average over the last three years, The St. Joe Company has grown earnings per share (EPS) by 40% each year (using a line of best fit). In the last year, its revenue is down -27%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has The St. Joe Company Been A Good Investment?
With a three year total loss of 8.2%, The St. Joe Company would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
It looks like The St. Joe Company pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we would not say that Jorge Gonzalez is generously paid, it would be good to see an improvement in business performance before too an increase in pay.
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 St. Joe insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.