Most Shareholders Will Probably Find That The CEO Compensation For DTE Energy Company (NYSE:DTE) Is Reasonable

Key Insights

• DTE Energy to hold its Annual General Meeting on 8th of May
• Salary of US$1.34m is part of CEO Jerry Norcia's total remuneration
• The overall pay is comparable to the industry average
• DTE Energy's EPS grew by 18% over the past three years while total shareholder return over the past three years was 16%

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

CEO Jerry Norcia has done a decent job of delivering relatively good performance at DTE Energy Company (NYSE:DTE) 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. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for DTE Energy

How Does Total Compensation For Jerry Norcia Compare With Other Companies In The Industry?

At the time of writing, our data shows that DTE Energy Company has a market capitalization of US$28b, and reported total annual CEO compensation of US$13m for the year to December 2024. That's a notable increase of 23% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.

For comparison, other companies in the American Integrated Utilities industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. This suggests that DTE Energy remunerates its CEO largely in line with the industry average. Moreover, Jerry Norcia also holds US$56m worth of DTE Energy stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 11% of total compensation represents salary and 89% is other remuneration. There isn't a significant difference between DTE Energy and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

DTE Energy Company's Growth

DTE Energy Company has seen its earnings per share (EPS) increase by 18% a year over the past three years. In the last year, its revenue is down 2.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 DTE Energy Company Been A Good Investment?

With a total shareholder return of 16% over three years, DTE Energy Company shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for DTE Energy (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

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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.