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Is Algonquin Power & Utilities Corp.'s (TSE:AQN) CEO Paid Enough Relative To Peers?

Simply Wall St

Ian Robertson has been the CEO of Algonquin Power & Utilities Corp. (TSE:AQN) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Algonquin Power & Utilities

How Does Ian Robertson's Compensation Compare With Similar Sized Companies?

According to our data, Algonquin Power & Utilities Corp. has a market capitalization of CA$12b, and paid its CEO total annual compensation worth CA$4.4m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$920k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CA$5.4b to CA$16b, we found the median CEO total compensation was CA$4.9m.

That means Ian Robertson receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Algonquin Power & Utilities has changed from year to year.

TSX:AQN CEO Compensation, March 7th 2020

Is Algonquin Power & Utilities Corp. Growing?

On average over the last three years, Algonquin Power & Utilities Corp. has grown earnings per share (EPS) by 66% each year (using a line of best fit). Its revenue is down 1.4% over last year.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Algonquin Power & Utilities Corp. Been A Good Investment?

I think that the total shareholder return of 104%, over three years, would leave most Algonquin Power & Utilities Corp. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Remuneration for Ian Robertson is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Algonquin Power & Utilities insiders are buying or selling shares.

If you want to buy a stock that is better than Algonquin Power & Utilities, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.