Yahoo Finance It's Unlikely That Shareholders Will Increase DTE Energy Company's (NYSE:DTE) Compensation By Much This Year
Key Insights
DTE Energy will host its Annual General Meeting on 2nd of May
Salary of US$1.34m is part of CEO Jerry Norcia's total remuneration
Total compensation is similar to the industry average
Over the past three years, DTE Energy's EPS grew by 4.7% and over the past three years, the total shareholder return was 3.1%
CEO Jerry Norcia has done a decent job of delivering relatively good performance at DTE Energy Company (NYSE:DTE) recently. As shareholders go into the upcoming AGM on 2nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
See our latest analysis for DTE Energy
Comparing DTE Energy Company's CEO Compensation With The Industry
Our data indicates that DTE Energy Company has a market capitalization of US$23b, and total annual CEO compensation was reported as US$10m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.
On comparing similar companies in the American Integrated Utilities industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$9.6m. From this we gather that Jerry Norcia is paid around the median for CEOs in the industry. Moreover, Jerry Norcia also holds US$36m worth of DTE Energy stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.3m | US$1.3m | 13% |
Other | US$8.9m | US$9.1m | 87% |
Total Compensation | US$10m | US$10m | 100% |
On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. Our data reveals that DTE Energy allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at DTE Energy Company's Growth Numbers
DTE Energy Company has seen its earnings per share (EPS) increase by 4.7% a year over the past three years. It saw its revenue drop 34% over the last year.
We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has DTE Energy Company Been A Good Investment?
DTE Energy Company has not done too badly by shareholders, with a total return of 3.1%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
To Conclude...
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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for DTE Energy you should be aware of, and 1 of them shouldn't be ignored.
Important note: DTE Energy is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
