Yahoo Finance Shareholders May Be More Conservative With Duke Energy Corporation's (NYSE:DUK) CEO Compensation For Now
Key Insights
Duke Energy's Annual General Meeting to take place on 9th of May
CEO Lynn Good's total compensation includes salary of US$1.50m
The overall pay is 51% above the industry average
Over the past three years, Duke Energy's EPS grew by 46% and over the past three years, the total shareholder return was 12%
Under the guidance of CEO Lynn Good, Duke Energy Corporation (NYSE:DUK) has performed reasonably well 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 9th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Duke Energy
How Does Total Compensation For Lynn Good Compare With Other Companies In The Industry?
According to our data, Duke Energy Corporation has a market capitalization of US$77b, and paid its CEO total annual compensation worth US$21m over the year to December 2023. That's slightly lower by 3.7% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.
For comparison, other companies in the American Electric Utilities industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$14m. Hence, we can conclude that Lynn Good is remunerated higher than the industry median. Furthermore, Lynn Good directly owns US$53m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.5m | US$1.5m | 7% |
Other | US$19m | US$20m | 93% |
Total Compensation | US$21m | US$21m | 100% |
Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. Duke Energy pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Duke Energy Corporation's Growth
Duke Energy Corporation has seen its earnings per share (EPS) increase by 46% a year over the past three years. In the last year, its revenue changed by just 1.0%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Duke Energy Corporation Been A Good Investment?
Duke Energy Corporation has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Duke Energy we think you should know about.
Important note: Duke Energy is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
