IDA Corp CEO Pay Deemed Fair by Shareholders

IDACORP, Inc. Under Lisa Grow’s Leadership: A Deep Dive into Performance, Compensation, and Institutional Influence
The energy sector is a high-stakes arena where leadership decisions ripple through balance sheets and shareholder returns. At the helm of IDACORP, Inc. (NYSE:IDA) since June 2020, CEO Lisa Grow has steered the company through economic turbulence, regulatory shifts, and the ever-present demand for sustainable growth. With institutional investors holding 87% of the company’s shares and Grow’s $6.7 million compensation package drawing scrutiny, IDACORP’s trajectory offers a case study in aligning executive incentives with long-term shareholder value—or exposing the cracks in that alignment.
—
The CEO Compensation Puzzle: Performance Pay or Overpay?
Lisa Grow’s $6.7 million annual compensation—85.1% of which is tied to bonuses—raises eyebrows, but the numbers tell a nuanced story. Over her tenure, IDACORP’s total shareholder return (TSR) clocked in at 5.1%, while EPS inched up by 1.1%. Not exactly meteoric, but steady. The company’s recent 4.5% annual EPS growth and 1.4% revenue uptick suggest incremental progress, not stagnation.
Critics might argue that Grow’s pay outstrips performance, especially compared to sector peers. Yet the structure of her package—heavy on bonuses, light on fixed salary—signals a shareholder-friendly model. If IDACORP stumbles, so does her paycheck. The $300 million follow-on equity offering filed under her watch further hints at institutional confidence in her strategy. Still, the question lingers: Is “steady” enough to justify millions in bonuses, or does this reflect a broader trend of overcompensating middling performance?
—
Institutional Ownership: A Double-Edged Sword
With 87% of IDACORP owned by institutional investors, the company enjoys stability but also dances to Wall Street’s tune. Heavyweights like Vanguard and BlackRock bring research muscle and long-term horizons, but their influence isn’t always benign. Their demand for quarterly results can pressure management to prioritize short-term gains—say, cost-cutting over grid modernization—that jeopardize future resilience.
The upside? Institutional scrutiny keeps Grow’s team transparent. These investors have the clout to demand clearer ESG roadmaps or operational efficiencies, which can benefit retail shareholders. But when market sentiment sours, their herd mentality can amplify sell-offs. Case in point: IDACORP’s stock dipped 8% in 2022 amid broader energy sector volatility, despite stable fundamentals. For Grow, balancing institutional expectations with long-term vision is like wiring a circuit during a blackout—messy, high-stakes, and illuminating.
—
The Energy Sector’s Tightrope: Growth vs. Gridlock
IDACORP operates in a sector where regulatory hurdles and climate pressures collide. While the company’s 1.4% revenue growth seems modest, it outperforms many regional utilities hamstrung by aging infrastructure and decarbonization costs. Grow’s focus on incremental EPS growth (4.5% annually) suggests a playbook of cautious reinvestment—think grid upgrades over splashy renewables ventures.
Yet this strategy risks leaving IDACORP behind as rivals chase federal clean-energy incentives. The $300 million equity offering could fund bold moves, but institutional investors might balk at the volatility of big bets. Here, Grow’s compensation model could backfire: If bonuses reward stability over innovation, does that stifle the very risk-taking utilities need to survive the energy transition?
—
The Verdict: Steady Hands or Missed Opportunities?
Lisa Grow’s IDACORP is a study in equilibrium. Her compensation aligns with shareholder interests, institutional ownership lends stability, and the company’s slow-but-steady growth avoids the pitfalls of reckless expansion. But equilibrium isn’t ambition. In a sector facing existential disruption, IDACORP’s “reasonable” performance may soon look like complacency.
For now, shareholders seem content. The stock’s modest returns and Grow’s bonus-heavy pay suggest a pact: We won’t rock the boat if you keep it afloat. But as climate deadlines loom and tech disrupts the grid, IDACORP’s next chapter will test whether steady hands can navigate a storm—or if it’s time for a captain willing to sail into the wind.