In This Article:
Lynn Good became the CEO of Duke Energy Corporation (NYSE:DUK) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Duke Energy
How Does Lynn Good's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Duke Energy Corporation has a market cap of US$70b, and reported total annual CEO compensation of US$14m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.4m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Lynn Good receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Duke Energy, below.
Is Duke Energy Corporation Growing?
On average over the last three years, Duke Energy Corporation has grown earnings per share (EPS) by 4.7% each year (using a line of best fit). Its revenue is up 2.1% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Duke Energy Corporation Been A Good Investment?
Duke Energy Corporation has generated a total shareholder return of 32% over three years, so most shareholders would 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...
Remuneration for Lynn Good is close enough to the median pay for a CEO of a large company .
We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Duke Energy (free visualization of insider trades).