Most Shareholders Will Probably Agree With Ameren Corporation's (NYSE:AEE) CEO Compensation

Key Insights

• Ameren's Annual General Meeting to take place on 8th of May
• Total pay for CEO Marty Lyons includes US$1.28m salary
• The overall pay is comparable to the industry average
• Ameren's EPS grew by 4.2% over the past three years while total shareholder return over the past three years was 16%

We've discovered 3 warning signs about Ameren. View them for free.

Under the guidance of CEO Marty Lyons, Ameren Corporation (NYSE:AEE) 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 8th of May. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Ameren

Comparing Ameren Corporation's CEO Compensation With The Industry

According to our data, Ameren Corporation has a market capitalization of US$27b, and paid its CEO total annual compensation worth US$9.7m over the year to December 2024. That's a notable increase of 8.0% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.

On comparing similar companies in the American Integrated Utilities industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$12m. From this we gather that Marty Lyons is paid around the median for CEOs in the industry. What's more, Marty Lyons holds US$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. It's interesting to note that Ameren pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Ameren Corporation's Growth Numbers

Over the past three years, Ameren Corporation has seen its earnings per share (EPS) grow by 4.2% per year. It achieved revenue growth of 1.5% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. 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 Ameren Corporation Been A Good Investment?

Ameren Corporation has served shareholders reasonably well, with a total return of 16% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Ameren you should be aware of, and 1 of them is concerning.

Important note: Ameren 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.