Key Insights

• Hubbell will host its Annual General Meeting on 6th of May
• Total pay for CEO Gerben Bakker includes US$1.13m salary
• Total compensation is 40% below industry average
• Hubbell's total shareholder return over the past three years was 93% while its EPS grew by 29% over the past three years

The solid performance at Hubbell Incorporated (NYSE:HUBB) has been impressive and shareholders will probably be pleased to know that CEO Gerben Bakker has delivered. At the upcoming AGM on 6th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Comparing Hubbell Incorporated's CEO Compensation With The Industry

At the time of writing, our data shows that Hubbell Incorporated has a market capitalization of US$19b, and reported total annual CEO compensation of US$9.3m for the year to December 2024. That's slightly lower by 3.6% over the previous 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 in the American Electrical industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$16m. Accordingly, Hubbell pays its CEO under the industry median. Furthermore, Gerben Bakker directly owns US$28m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. Hubbell sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Hubbell Incorporated's Growth Numbers

Hubbell Incorporated has seen its earnings per share (EPS) increase by 29% a year over the past three years. It achieved revenue growth of 4.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hubbell Incorporated Been A Good Investment?

Boasting a total shareholder return of 93% over three years, Hubbell Incorporated has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

So you may want to check if insiders are buying Hubbell shares with their own money (free access).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.