Is The AES Corporation’s (NYSE:AES) CEO Salary Justified?
Andrés Ricardo Weilert became the CEO of The AES Corporation (NYSE:AES) in 2011. This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for AES
How Does Andrés Ricardo Weilert’s Compensation Compare With Similar Sized Companies?
According to our data, The AES Corporation has a market capitalization of US$9.7b, and pays its CEO total annual compensation worth US$9m. That’s a modest increase of 4.1% on the prior year year. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.
So Andrés Ricardo Weilert receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at AES has changed from year to year.
Is The AES Corporation Growing?
The AES Corporation has reduced its earnings per share by an average of 85% a year, over the last three years. It achieved revenue growth of 18% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth wto overlook the fact that earnings per share has gone backwards over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has The AES Corporation Been A Good Investment?
Boasting a total shareholder return of 67% over three years, The AES Corporation has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Andrés Ricardo Weilert is paid around the same as most CEOs of large companies.
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can’t see a reason to suggest the pay is inappropriate. Shareholders may want to check for free if The AES Corporation insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
