Jim Pozzi has been the CEO of American National Group, Inc. (NASDAQ:ANAT) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Jim Pozzi Compare With Other Companies In The Industry?
At the time of writing, our data shows that American National Group, Inc. has a market capitalization of US$1.9b, and reported total annual CEO compensation of US$7.9m for the year to December 2019. Notably, that's an increase of 91% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$4.2m. This suggests that Jim Pozzi is paid more than the median for the industry. Furthermore, Jim Pozzi directly owns US$1.5m worth of shares in the company.
On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. It's interesting to note that American National Group allocates a smaller portion of compensation to salary in comparison to the broader 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 American National Group, Inc.'s Growth Numbers
Over the last three years, American National Group, Inc. has shrunk its earnings per share by 9.5% per year. It saw its revenue drop 9.1% over the last year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has American National Group, Inc. Been A Good Investment?
With a three year total loss of 35% for the shareholders, American National Group, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Jim is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for American National Group that investors should look into moving forward.
Important note: American National Group 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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