Darrel Anderson has been the CEO of IDACORP, Inc. (NYSE:IDA) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Darrel Anderson's Compensation Compare With Similar Sized Companies?
Our data indicates that IDACORP, Inc. is worth US$4.9b, and total annual CEO compensation is US$5.4m. (This is based on the year to December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$858k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.7m.
So Darrel Anderson is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at IDACORP, below.
Is IDACORP, Inc. Growing?
On average over the last three years, IDACORP, Inc. has grown earnings per share (EPS) by 6.8% each year (using a line of best fit). It achieved revenue growth of 1.6% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.
Has IDACORP, Inc. Been A Good Investment?
Boasting a total shareholder return of 48% over three years, IDACORP, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Darrel Anderson is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I'd venture that the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling IDACORP shares (free trial).
Important note: IDACORP may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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