How Does Dawson Geophysical's (NASDAQ:DWSN) CEO Pay Compare With Company Performance?
This article will reflect on the compensation paid to Stephen Jumper who has served as CEO of Dawson Geophysical Company (NASDAQ:DWSN) since 2015. This analysis will also assess whether Dawson Geophysical pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Dawson Geophysical
How Does Total Compensation For Stephen Jumper Compare With Other Companies In The Industry?
Our data indicates that Dawson Geophysical Company has a market capitalization of US$52m, and total annual CEO compensation was reported as US$644k for the year to December 2019. We note that's a decrease of 26% compared to last year. Notably, the salary which is US$600.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.7m. In other words, Dawson Geophysical pays its CEO lower than the industry median. What's more, Stephen Jumper holds US$542k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$600k | US$577k | 93% |
Other | US$44k | US$299k | 7% |
Total Compensation | US$644k | US$876k | 100% |
On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. According to our research, Dawson Geophysical has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Dawson Geophysical Company's Growth Numbers
Dawson Geophysical Company's earnings per share (EPS) grew 39% per year over the last three years. It saw its revenue drop 3.0% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Dawson Geophysical Company Been A Good Investment?
Given the total shareholder loss of 49% over three years, many shareholders in Dawson Geophysical Company are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As previously discussed, Stephen is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Stephen is compensated fairly. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Dawson Geophysical that investors should look into moving forward.
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.
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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