How Much Is PNM Resources, Inc. (NYSE:PNM) CEO Getting Paid?

Pat Vincent-Collawn became the CEO of PNM Resources, Inc. (NYSE:PNM) in 2010, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for PNM Resources.

View our latest analysis for PNM Resources

How Does Total Compensation For Pat Vincent-Collawn Compare With Other Companies In The Industry?

According to our data, PNM Resources, Inc. has a market capitalization of US$3.3b, and paid its CEO total annual compensation worth US$5.0m over the year to December 2019. That's a modest increase of 5.8% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$891k.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$4.1m. From this we gather that Pat Vincent-Collawn is paid around the median for CEOs in the industry. Furthermore, Pat Vincent-Collawn directly owns US$23m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. PNM Resources is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at PNM Resources, Inc.'s Growth Numbers

PNM Resources, Inc. has seen its earnings per share (EPS) increase by 8.1% a year over the past three years. Its revenue is up 1.6% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Moving away from current form for a second, 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?

With a total shareholder return of 9.9% over three years, PNM Resources, Inc. has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we touched on above, PNM Resources, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has failed to produce substantial growth in either EPS or total shareholder return. Considering the steady performance, it's tough to call out CEO compensation as too high, but shareholders might want to see more robust growth metrics before agreeing to a future raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for PNM Resources that investors should think about before committing capital to this stock.

Important note: PNM Resources 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.

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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