It Looks Like Shareholders Would Probably Approve Genesis Energy Limited's (NZSE:GNE) CEO Compensation Package

We have been pretty impressed with the performance at Genesis Energy Limited (NZSE:GNE) recently and CEO Marc England deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 28 October 2021. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Genesis Energy

Comparing Genesis Energy Limited's CEO Compensation With the industry

Our data indicates that Genesis Energy Limited has a market capitalization of NZ$3.4b, and total annual CEO compensation was reported as NZ$2.4m for the year to June 2021. That's a notable increase of 14% on last year. Notably, the salary which is NZ$1.21m, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from NZ$2.8b to NZ$8.9b, the reported median CEO total compensation was NZ$2.6m. So it looks like Genesis Energy compensates Marc England in line with the median for the industry. Moreover, Marc England also holds NZ$785k worth of Genesis Energy stock directly under their own name.

Component	2021	2020	Proportion (2021)
Salary	NZ$1.2m	NZ$1.2m	51%
Other	NZ$1.1m	NZ$845k	49%
Total Compensation	NZ$2.4m	NZ$2.1m	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. There isn't a significant difference between Genesis Energy and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Genesis Energy Limited's Growth

Over the past three years, Genesis Energy Limited has seen its earnings per share (EPS) grow by 18% per year. Its revenue is up 24% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Genesis Energy Limited Been A Good Investment?

Most shareholders would probably be pleased with Genesis Energy Limited for providing a total return of 65% over three years. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 did our research and identified 5 warning signs (and 1 which makes us a bit uncomfortable) in Genesis Energy we think you should know about.

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.

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.

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