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Is IDACORP, Inc. (NYSE:IDA) Excessively Paying Its CEO?

Simply Wall St

Darrel Anderson became the CEO of IDACORP, Inc. (NYSE:IDA) in 2014. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for IDACORP

How Does Darrel Anderson's Compensation Compare With Similar Sized Companies?

Our data indicates that IDACORP, Inc. is worth US$5.3b, and total annual CEO compensation was reported as US$5.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$858k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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, below, how CEO compensation at IDACORP has changed over time.

NYSE:IDA CEO Compensation, November 18th 2019

Is IDACORP, Inc. Growing?

On average over the last three years, IDACORP, Inc. has grown earnings per share (EPS) by 4.9% each year (using a line of best fit). In the last year, its revenue changed by just 0.07%.

I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. 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 IDACORP, Inc. Been A Good Investment?

I think that the total shareholder return of 50%, over three years, would leave most IDACORP, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Darrel Anderson is paid around the same as most CEOs of similar size companies.

The company isn't showing particularly great growth, but shareholder returns have been pleasing. 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).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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. Thank you for reading.