Gil Goodrich became the CEO of Goodrich Petroleum Corporation (NYSEMKT:GDP) in 1995. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Gil Goodrich's Compensation Compare With Similar Sized Companies?
Our data indicates that Goodrich Petroleum Corporation is worth US$110m, and total annual CEO compensation was reported as US$965k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$474k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$515k.
It would therefore appear that Goodrich Petroleum Corporation pays Gil Goodrich more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Goodrich Petroleum, below.
Is Goodrich Petroleum Corporation Growing?
Goodrich Petroleum Corporation has increased its earnings per share (EPS) by an average of 55% a year, over the last three years (using a line of best fit). Its revenue is up 80% over last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Goodrich Petroleum Corporation Been A Good Investment?
Since shareholders would have lost about 36% over three years, some Goodrich Petroleum 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 Goodrich Petroleum 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Goodrich Petroleum (free visualization of insider trades).
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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