Yahoo Finance OGE Energy Corp.'s (NYSE:OGE) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
OGE Energy to hold its Annual General Meeting on 16th of May
Total pay for CEO Robert Trauschke includes US$1.16m salary
The overall pay is comparable to the industry average
OGE Energy's total shareholder return over the past three years was 24% while its EPS grew by 2.2% over the past three years
CEO Robert Trauschke has done a decent job of delivering relatively good performance at OGE Energy Corp. (NYSE:OGE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for OGE Energy
Comparing OGE Energy Corp.'s CEO Compensation With The Industry
Our data indicates that OGE Energy Corp. has a market capitalization of US$7.2b, and total annual CEO compensation was reported as US$8.4m for the year to December 2023. We note that's an increase of 15% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.
In comparison with other companies in the American Electric Utilities industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$7.4m. So it looks like OGE Energy compensates Robert Trauschke in line with the median for the industry. What's more, Robert Trauschke holds US$16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.2m | US$1.1m | 14% |
Other | US$7.3m | US$6.2m | 86% |
Total Compensation | US$8.4m | US$7.3m | 100% |
On an industry level, around 11% of total compensation represents salary and 89% is other remuneration. OGE Energy pays out 14% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at OGE Energy Corp.'s Growth Numbers
OGE Energy Corp. has seen its earnings per share (EPS) increase by 2.2% a year over the past three years. In the last year, its revenue is down 19%.
We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has OGE Energy Corp. Been A Good Investment?
With a total shareholder return of 24% over three years, OGE Energy Corp. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
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 OGE Energy (1 is a bit unpleasant!) that you should be aware of before investing here.
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.
