Key Insights

• Nuvve Holding will host its Annual General Meeting on 20th of August
• CEO Gregory Poilasne's total compensation includes salary of US$218.3k
• The total compensation is 31% higher than the average for the industry
• Over the past three years, Nuvve Holding's EPS grew by 54% and over the past three years, the total loss to shareholders 100%

The underwhelming share price performance of Nuvve Holding Corp. (NASDAQ:NVVE) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 20th of August could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

How Does Total Compensation For Gregory Poilasne Compare With Other Companies In The Industry?

According to our data, Nuvve Holding Corp. has a market capitalization of US$4.0m, and paid its CEO total annual compensation worth US$994k over the year to December 2023. That's a notable increase of 39% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$218k.

In comparison with other companies in the American Electrical industry with market capitalizations under US$200m, the reported median total CEO compensation was US$756k. This suggests that Gregory Poilasne is paid more than the median for the industry. Furthermore, Gregory Poilasne directly owns US$107k worth of shares in the company.

On an industry level, roughly 24% of total compensation represents salary and 76% is other remuneration. Nuvve Holding is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Nuvve Holding Corp.'s Growth

Nuvve Holding Corp.'s earnings per share (EPS) grew 54% per year over the last three years. In the last year, its revenue is up 49%.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nuvve Holding Corp. Been A Good Investment?

With a total shareholder return of -100% over three years, Nuvve Holding Corp. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 5 warning signs for Nuvve Holding that investors should be aware of in a dynamic business environment.

Switching gears from Nuvve Holding, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.