Increases to Portland General Electric Company's (NYSE:POR) CEO Compensation Might Cool off for now

Key Insights

• Portland General Electric will host its Annual General Meeting on 18th of April
• CEO Maria Pope's total compensation includes salary of US$1.16m
• Total compensation is 31% above industry average
• Portland General Electric's three-year loss to shareholders was 13% while its EPS grew by 1.6% over the past three years

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In the past three years, shareholders of Portland General Electric Company (NYSE:POR) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 18th of April. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Portland General Electric

How Does Total Compensation For Maria Pope Compare With Other Companies In The Industry?

At the time of writing, our data shows that Portland General Electric Company has a market capitalization of US$4.6b, and reported total annual CEO compensation of US$7.4m for the year to December 2024. That's a fairly small increase of 5.8% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

On comparing similar companies from the American Electric Utilities industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$5.6m. This suggests that Maria Pope is paid more than the median for the industry. Furthermore, Maria Pope directly owns US$6.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 12% of total compensation out of all the companies we analyzed, while other remuneration made up 88% of the pie. According to our research, Portland General Electric has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Portland General Electric Company's Growth Numbers

Portland General Electric Company has seen its earnings per share (EPS) increase by 1.6% a year over the past three years. In the last year, its revenue is up 18%.

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. 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 Portland General Electric Company Been A Good Investment?

With a three year total loss of 13% for the shareholders, Portland General Electric Company would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in Portland General Electric we think you should know about.

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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.