This Is The Reason Why We Think NuScale Power Corporation's (NYSE:SMR) CEO Might Be Underpaid

Key Insights

• NuScale Power to hold its Annual General Meeting on 23rd of May
• Total pay for CEO John Hopkins includes US$613.8k salary
• Total compensation is 69% below industry average
• Over the past three years, NuScale Power's EPS grew by 171% and over the past three years, the total shareholder return was 144%

We've discovered 4 warning signs about NuScale Power. View them for free.

The solid performance at NuScale Power Corporation (NYSE:SMR) has been impressive and shareholders will probably be pleased to know that CEO John Hopkins has delivered. At the upcoming AGM on 23rd of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for NuScale Power

Comparing NuScale Power Corporation's CEO Compensation With The Industry

According to our data, NuScale Power Corporation has a market capitalization of US$6.5b, and paid its CEO total annual compensation worth US$3.4m over the year to December 2024. We note that's an increase of 50% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$614k.

On examining similar-sized companies in the American Electrical industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$11m. That is to say, John Hopkins is paid under the industry median. Moreover, John Hopkins also holds US$632k worth of NuScale Power stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$614k	US$600k	18%
Other	US$2.8m	US$1.7m	82%
Total Compensation	US$3.4m	US$2.3m	100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. NuScale Power sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

NuScale Power Corporation's Growth

NuScale Power Corporation's earnings per share (EPS) grew 171% per year over the last three years. In the last year, its revenue is up 162%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has NuScale Power Corporation Been A Good Investment?

We think that the total shareholder return of 144%, over three years, would leave most NuScale Power Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 4 warning signs for NuScale Power that investors should think about before committing capital to this stock.

Important note: NuScale Power 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.