We Think Shareholders Will Probably Be Generous With Itron, Inc.'s (NASDAQ:ITRI) CEO Compensation

Key Insights

• Itron to hold its Annual General Meeting on 8th of May
• Total pay for CEO Tom Deitrich includes US$900.0k salary
• The total compensation is similar to the average for the industry
• Itron's total shareholder return over the past three years was 117% while its EPS grew by 115% over the past three years

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We have been pretty impressed with the performance at Itron, Inc. (NASDAQ:ITRI) recently and CEO Tom Deitrich deserves a mention for their role in it. Coming up to the next AGM on 8th of May, shareholders would be keeping this in mind. 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 Itron

How Does Total Compensation For Tom Deitrich Compare With Other Companies In The Industry?

At the time of writing, our data shows that Itron, Inc. has a market capitalization of US$5.1b, and reported total annual CEO compensation of US$9.4m for the year to December 2024. We note that's an increase of 52% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$900k.

On comparing similar companies from the American Electronic industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$8.8m. So it looks like Itron compensates Tom Deitrich in line with the median for the industry. What's more, Tom Deitrich holds US$27m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$900k	US$875k	10%
Other	US$8.5m	US$5.3m	90%
Total Compensation	US$9.4m	US$6.2m	100%

On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that Itron allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Itron, Inc.'s Growth Numbers

Over the past three years, Itron, Inc. has seen its earnings per share (EPS) grow by 115% per year. It achieved revenue growth of 12% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Itron, Inc. Been A Good Investment?

Boasting a total shareholder return of 117% over three years, Itron, Inc. has done well by shareholders. 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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Itron that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.