It Looks Like Shareholders Would Probably Approve PG&E Corporation's (NYSE:PCG) CEO Compensation Package

Key Insights

• PG&E will host its Annual General Meeting on 16th of May

• CEO Patti Poppe's total compensation includes salary of US$1.40m

• Total compensation is similar to the industry average

• Over the past three years, PG&E's EPS grew by 85% and over the past three years, the total shareholder return was 69%

It would be hard to discount the role that CEO Patti Poppe has played in delivering the impressive results at PG&E Corporation (NYSE:PCG) recently. Coming up to the next AGM on 16th of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for PG&E

Comparing PG&E Corporation's CEO Compensation With The Industry

Our data indicates that PG&E Corporation has a market capitalization of US$38b, and total annual CEO compensation was reported as US$17m for the year to December 2023. Notably, that's an increase of 20% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

In comparison with other companies in the American Electric Utilities industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$14m. So it looks like PG&E compensates Patti Poppe in line with the median for the industry. What's more, Patti Poppe holds US$27m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. PG&E pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

PG&E Corporation's Growth

PG&E Corporation's earnings per share (EPS) grew 85% per year over the last three years. It achieved revenue growth of 9.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has PG&E Corporation Been A Good Investment?

Boasting a total shareholder return of 69% over three years, PG&E Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 PG&E you should be aware of, and 1 of them is concerning.

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.