Increases to Caribbean Utilities Company, Ltd.'s (TSE:CUP.U) CEO Compensation Might Cool off for now

Key Insights

• Caribbean Utilities Company's Annual General Meeting to take place on 12th of May
• Salary of US$352.5k is part of CEO J. F. Hew's total remuneration
• Total compensation is 498% above industry average
• Caribbean Utilities Company's EPS grew by 7.8% over the past three years while total shareholder return over the past three years was 4.3%

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Performance at Caribbean Utilities Company, Ltd. (TSE:CUP.U) has been reasonably good and CEO J. F. Hew has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Caribbean Utilities Company

Comparing Caribbean Utilities Company, Ltd.'s CEO Compensation With The Industry

Our data indicates that Caribbean Utilities Company, Ltd. has a market capitalization of US$562m, and total annual CEO compensation was reported as US$685k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$352.5k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the Canada Electric Utilities industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$114k. Accordingly, our analysis reveals that Caribbean Utilities Company, Ltd. pays J. F. Hew north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	US$352k	US$336k	51%
Other	US$332k	US$335k	49%
Total Compensation	US$685k	US$671k	100%

On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. According to our research, Caribbean Utilities Company has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Caribbean Utilities Company, Ltd.'s Growth Numbers

Caribbean Utilities Company, Ltd.'s earnings per share (EPS) grew 7.8% per year over the last three years. In the last year, its revenue is up 2.2%.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Caribbean Utilities Company, Ltd. Been A Good Investment?

Caribbean Utilities Company, Ltd. has not done too badly by shareholders, with a total return of 4.3%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Caribbean Utilities Company (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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.

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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.