Key Insights

• DTE Energy will host its Annual General Meeting on 2nd of May
• Salary of US$1.34m is part of CEO Jerry Norcia's total remuneration
• The overall pay is comparable to the industry average
• DTE Energy's EPS grew by 4.7% over the past three years while total shareholder return over the past three years was 3.1%

CEO Jerry Norcia has done a decent job of delivering relatively good performance at DTE Energy Company (NYSE:DTE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 2nd of May. Here is our take on why we think the CEO compensation looks appropriate.

How Does Total Compensation For Jerry Norcia Compare With Other Companies In The Industry?

At the time of writing, our data shows that DTE Energy Company has a market capitalization of US$23b, and reported total annual CEO compensation of US$10m for the year to December 2023. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.

In comparison with other companies in the American Integrated Utilities industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$9.6m. From this we gather that Jerry Norcia is paid around the median for CEOs in the industry. What's more, Jerry Norcia holds US$36m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. Our data reveals that DTE Energy allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at DTE Energy Company's Growth Numbers

DTE Energy Company's earnings per share (EPS) grew 4.7% per year over the last three years. In the last year, its revenue is down 34%.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has DTE Energy Company Been A Good Investment?

With a total shareholder return of 3.1% over three years, DTE Energy Company has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for DTE Energy (1 is potentially serious!) that you should be aware of before investing here.

Important note: DTE Energy is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.