Is Alliant Energy Corporation’s (NYSE:LNT) CEO Paid Enough Relative To Peers?
Pat Kampling has been the CEO of Alliant Energy Corporation (NYSE:LNT) since 2012. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Alliant Energy
How Does Pat Kampling’s Compensation Compare With Similar Sized Companies?
According to our data, Alliant Energy Corporation has a market capitalization of US$10.2b, and pays its CEO total annual compensation worth US$7m. That’s just a smallish increase of 6.4% on last year. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Alliant Energy has changed from year to year.
Is Alliant Energy Corporation Growing?
Over the last three years Alliant Energy Corporation has grown its earnings per share (EPS) by an average of 6.5% per year. It achieved revenue growth of 4.6% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Alliant Energy Corporation Been A Good Investment?
I think that the total shareholder return of 66%, over three years, would leave most Alliant Energy Corporation shareholders smiling. 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…
Alliant Energy Corporation is currently paying its CEO below what is normal for large companies.
It’s well worth noting that while Pat Kampling is paid below what is normal at large companies, the returns have been very pleasing, over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Alliant Energy Corporation shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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.
