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It would be hard to discount the role that CEO Marc England has played in delivering the impressive results at Genesis Energy Limited (NZSE:GNE) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 28 October 2021. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
How Does Total Compensation For Marc England Compare With Other Companies In The Industry?
According to our data, Genesis Energy Limited has a market capitalization of NZ$3.4b, and paid its CEO total annual compensation worth NZ$2.4m over the year to June 2021. Notably, that's an increase of 14% over the year before. Notably, the salary which is NZ$1.21m, represents a considerable chunk of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations ranging from NZ$2.8b to NZ$8.9b, the reported median CEO total compensation was NZ$2.6m. This suggests that Genesis Energy remunerates its CEO largely in line with the industry average. What's more, Marc England holds NZ$785k worth of shares in the company in their own name.
Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. Genesis Energy is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Genesis Energy Limited's Growth Numbers
Genesis Energy Limited's earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 24% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Genesis Energy Limited Been A Good Investment?
Boasting a total shareholder return of 65% over three years, Genesis Energy Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Genesis Energy (1 can't be ignored!) 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.
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.
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