Is Jupiter Energy Limited's (ASX:JPR) CEO Paid At A Competitive Rate?

Simply Wall St

Geoff Gander is the CEO of Jupiter Energy Limited (ASX:JPR). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Jupiter Energy

How Does Geoff Gander's Compensation Compare With Similar Sized Companies?

According to our data, Jupiter Energy Limited has a market capitalization of AU$1.7m, and paid its CEO total annual compensation worth AU$390k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$313k. We looked at a group of companies with market capitalizations under AU$291m, and the median CEO total compensation was AU$380k.

So Geoff Gander receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Jupiter Energy, below.

ASX:JPR CEO Compensation, January 20th 2020

Is Jupiter Energy Limited Growing?

Over the last three years Jupiter Energy Limited has shrunk its earnings per share by an average of 6.6% per year (measured with a line of best fit). In the last year, its revenue is up 207%.

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. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Jupiter Energy Limited Been A Good Investment?

With a three year total loss of 96%, Jupiter Energy Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Geoff Gander is close enough to the median pay for a CEO of a similar sized company .

The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if Jupiter Energy 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.