Key Insights
- IDACORP will host its Annual General Meeting on 15th of May
- Salary of US$1.00m is part of CEO Lisa Grow's total remuneration
- The total compensation is similar to the average for the industry
- Over the past three years, IDACORP's EPS grew by 4.5% and over the past three years, the total shareholder return was 17%
CEO Lisa Grow has done a decent job of delivering relatively good performance at IDACORP, Inc. (NYSE:IDA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of May. Here is our take on why we think the CEO compensation looks appropriate.
View our latest analysis for IDACORP
How Does Total Compensation For Lisa Grow Compare With Other Companies In The Industry?
Our data indicates that IDACORP, Inc. has a market capitalization of US$6.3b, and total annual CEO compensation was reported as US$6.7m for the year to December 2024. We note that's a decrease of 9.1% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.
On examining similar-sized companies in the American Electric Utilities industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$6.7m. So it looks like IDACORP compensates Lisa Grow in line with the median for the industry. What's more, Lisa Grow holds US$6.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.0m | US$920k | 15% |
| Other | US$5.7m | US$6.5m | 85% |
| Total Compensation | US$6.7m | US$7.4m | 100% |
On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. According to our research, IDACORP has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
IDACORP, Inc.'s Growth
Over the past three years, IDACORP, Inc. has seen its earnings per share (EPS) grow by 4.5% per year. It achieved revenue growth of 1.4% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has IDACORP, Inc. Been A Good Investment?
IDACORP, Inc. has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for IDACORP you should be aware of, and 1 of them doesn't sit too well with us.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.