Yahoo Finance Here's Why It's Unlikely That Sunnova Energy International Inc.'s (NYSE:NOVA) CEO Will See A Pay Rise This Year
Key Insights
Sunnova Energy International will host its Annual General Meeting on 15th of May
Total pay for CEO John Berger includes US$620.8k salary
The overall pay is 4,449% above the industry average
Sunnova Energy International's EPS declined by 18% over the past three years while total shareholder loss over the past three years was 84%
The results at Sunnova Energy International Inc. (NYSE:NOVA) have been quite disappointing recently and CEO John Berger bears some responsibility for this. At the upcoming AGM on 15th of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for Sunnova Energy International
Comparing Sunnova Energy International Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Sunnova Energy International Inc. has a market capitalization of US$548m, and reported total annual CEO compensation of US$5.9m for the year to December 2023. We note that's an increase of 9.5% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$621k.
In comparison with other companies in the American Renewable Energy industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$129k. Hence, we can conclude that John Berger is remunerated higher than the industry median. What's more, John Berger holds US$1.8m worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$621k | US$521k | 11% |
Other | US$5.2m | US$4.8m | 89% |
Total Compensation | US$5.9m | US$5.4m | 100% |
On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. It's interesting to note that Sunnova Energy International allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Sunnova Energy International Inc.'s Growth
Sunnova Energy International Inc. has reduced its earnings per share by 18% a year over the last three years. It achieved revenue growth of 10% over the last year.
Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sunnova Energy International Inc. Been A Good Investment?
The return of -84% over three years would not have pleased Sunnova Energy International Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 3 which make us uncomfortable) in Sunnova Energy International we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
