Infrastructure and Energy Alternatives, Inc.'s (NASDAQ:IEA) CEO Compensation Is Looking A Bit Stretched At The Moment

Under the guidance of CEO JP Roehm, Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 13 May 2021. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Infrastructure and Energy Alternatives

Comparing Infrastructure and Energy Alternatives, Inc.'s CEO Compensation With the industry

According to our data, Infrastructure and Energy Alternatives, Inc. has a market capitalization of US$295m, and paid its CEO total annual compensation worth US$2.5m over the year to December 2020. Notably, that's an increase of 31% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$650k.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.5m. Accordingly, our analysis reveals that Infrastructure and Energy Alternatives, Inc. pays JP Roehm north of the industry median. Moreover, JP Roehm also holds US$10m worth of Infrastructure and Energy Alternatives stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$650k	US$550k	26%
Other	US$1.9m	US$1.4m	74%
Total Compensation	US$2.5m	US$1.9m	100%

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. It's interesting to note that Infrastructure and Energy Alternatives pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Infrastructure and Energy Alternatives, Inc.'s Growth

Infrastructure and Energy Alternatives, Inc.'s earnings per share (EPS) grew 1.9% per year over the last three years. Its revenue is up 20% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Infrastructure and Energy Alternatives, Inc. Been A Good Investment?

Infrastructure and Energy Alternatives, Inc. has generated a total shareholder return of 32% 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.

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Infrastructure and Energy Alternatives (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: Infrastructure and Energy Alternatives 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. 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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