Yahoo Finance How Much Is Quanta Services' (NYSE:PWR) CEO Getting Paid?
Duke Austin has been the CEO of Quanta Services, Inc. (NYSE:PWR) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Quanta Services pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Quanta Services
How Does Total Compensation For Duke Austin Compare With Other Companies In The Industry?
At the time of writing, our data shows that Quanta Services, Inc. has a market capitalization of US$9.6b, and reported total annual CEO compensation of US$10m for the year to December 2019. That's a notable increase of 11% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
On comparing similar companies from the same industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$8.1m. This suggests that Quanta Services remunerates its CEO largely in line with the industry average. What's more, Duke Austin holds US$43m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$1.1m | US$1.1m | 11% |
Other | US$9.1m | US$8.1m | 89% |
Total Compensation | US$10m | US$9.2m | 100% |
On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. It's interesting to note that Quanta Services allocates a smaller portion of compensation to salary in comparison 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.
Quanta Services, Inc.'s Growth
Over the past three years, Quanta Services, Inc. has seen its earnings per share (EPS) grow by 14% per year. Its revenue is down 5.8% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Quanta Services, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Quanta Services, Inc. for providing a total return of 76% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As previously discussed, Duke is compensated close to the median for companies of its size, and which belong to the same industry. The company is growing EPS and total shareholder returns have been pleasing. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Quanta Services that investors should think about before committing capital to this 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.
This article by Simply Wall St is general in nature. 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.
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