What Did Avangrid, Inc.’s (NYSE:AGR) CEO Take Home Last Year?
In 2015 Jim Torgerson was appointed CEO of Avangrid, Inc. (NYSE:AGR). This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Avangrid
How Does Jim Torgerson’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Avangrid, Inc. has a market cap of US$15b, and is paying total annual CEO compensation of US$2.5m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Avangrid has changed over time.
Is Avangrid, Inc. Growing?
On average over the last three years, Avangrid, Inc. has shrunk earnings per share by 3.6% each year. Its revenue is up 7.2% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Avangrid, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Avangrid, Inc. for providing a total return of 50% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Avangrid, Inc. is currently paying its CEO below what is normal for large companies.
Jim Torgerson is paid less than CEOs of other large companies. While the company isn’t growing on our analysis, shareholder returns have been good in recent years. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Avangrid (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.
