Jim Pozzi has been the CEO of American National Insurance Company (NASDAQ:ANAT) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jim Pozzi’s Compensation Compare With Similar Sized Companies?
According to our data, American National Insurance Company has a market capitalization of US$3.4b, and pays its CEO total annual compensation worth US$3.0m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$966k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5.0m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at American National Insurance, below.
Is American National Insurance Company Growing?
On average over the last three years, American National Insurance Company has grown earnings per share (EPS) by 43% each year. In the last year, its revenue is up 12%.
This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, 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 American National Insurance Company Been A Good Investment?
With a total shareholder return of 27% over three years, American National Insurance Company shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
It appears that American National Insurance Company remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Jim Pozzi is overcompensated.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. Shareholders may want to check for free if American National Insurance insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.