Pat Vincent-Collawn became the CEO of PNM Resources, Inc. (NYSE:PNM) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for PNM Resources
How Does Pat Vincent-Collawn’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that PNM Resources, Inc. has a market cap of US$3.3b, and is paying total annual CEO compensation of US$4.4m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$818k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5.2m.
So Pat Vincent-Collawn receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at PNM Resources has changed over time.
Is PNM Resources, Inc. Growing?
On average over the last three years, PNM Resources, Inc. has grown earnings per share (EPS) by 24% each year. In the last year, its revenue is down -1.6%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.
It could be important to check this free visual depiction of what analysts expect for the future.
Has PNM Resources, Inc. Been A Good Investment?
I think that the total shareholder return of 45%, over three years, would leave most PNM Resources, Inc. shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Pat Vincent-Collawn is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling PNM Resources shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.