Yahoo Finance Most Shareholders Will Probably Agree With IDACORP, Inc.'s (NYSE:IDA) CEO Compensation
Key Insights
IDACORP's Annual General Meeting to take place on 16th of May
CEO Lisa Grow's total compensation includes salary of US$920.0k
The total compensation is similar to the average for the industry
Over the past three years, IDACORP's EPS grew by 1.1% and over the past three years, the total shareholder return was 5.1%
Performance at IDACORP, Inc. (NYSE:IDA) has been reasonably good and CEO Lisa Grow has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 16th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
View our latest analysis for IDACORP
How Does Total Compensation For Lisa Grow Compare With Other Companies In The Industry?
Our data indicates that IDACORP, Inc. has a market capitalization of US$4.9b, and total annual CEO compensation was reported as US$7.4m for the year to December 2023. That's a notable increase of 66% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$920k.
On comparing similar companies from the American Electric Utilities industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$7.4m. So it looks like IDACORP compensates Lisa Grow in line with the median for the industry. Furthermore, Lisa Grow directly owns US$4.8m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$920k | US$850k | 12% |
Other | US$6.5m | US$3.6m | 88% |
Total Compensation | US$7.4m | US$4.4m | 100% |
Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. According to our research, IDACORP has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at IDACORP, Inc.'s Growth Numbers
IDACORP, Inc.'s earnings per share (EPS) grew 1.1% per year over the last three years. It achieved revenue growth of 3.3% over the last year.
We'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has IDACORP, Inc. Been A Good Investment?
IDACORP, Inc. has generated a total shareholder return of 5.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for IDACORP (1 doesn't sit too well with us!) that you should be aware of before investing here.
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.
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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.
