Why Global Water Resources, Inc.'s (NASDAQ:GWRS) CEO Pay Matters To You

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In 2015 Ron Fleming was appointed CEO of Global Water Resources, Inc. (NASDAQ:GWRS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Global Water Resources

How Does Ron Fleming's Compensation Compare With Similar Sized Companies?

According to our data, Global Water Resources, Inc. has a market capitalization of US$265m, and paid its CEO total annual compensation worth US$668k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$311k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Global Water Resources has changed over time.

NasdaqGM:GWRS CEO Compensation, November 11th 2019
NasdaqGM:GWRS CEO Compensation, November 11th 2019

Is Global Water Resources, Inc. Growing?

On average over the last three years, Global Water Resources, Inc. has grown earnings per share (EPS) by 57% each year (using a line of best fit). Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.

Has Global Water Resources, Inc. Been A Good Investment?

I think that the total shareholder return of 72%, over three years, would leave most Global Water Resources, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Global Water Resources, Inc. is currently paying its CEO below what is normal for companies of its size.

Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Ron Fleming deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Global Water Resources shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.

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