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Is Conifer Holdings, Inc.'s (NASDAQ:CNFR) CEO Salary Justified?

Simply Wall St

Jim Petcoff has been the CEO of Conifer Holdings, Inc. (NASDAQ:CNFR) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Conifer Holdings

How Does Jim Petcoff's Compensation Compare With Similar Sized Companies?

According to our data, Conifer Holdings, Inc. has a market capitalization of US$38m, and paid its CEO total annual compensation worth US$675k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$550k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$515k.

It would therefore appear that Conifer Holdings, Inc. pays Jim Petcoff more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Conifer Holdings, below.

NasdaqGM:CNFR CEO Compensation, January 21st 2020

Is Conifer Holdings, Inc. Growing?

Over the last three years Conifer Holdings, Inc. has grown its earnings per share (EPS) by an average of 4.0% per year (using a line of best fit). In the last year, its revenue is down 6.3%.

I generally like to see a little revenue growth, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Conifer Holdings, Inc. Been A Good Investment?

With a three year total loss of 43%, Conifer Holdings, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at Conifer Holdings, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Conifer Holdings shares (free trial).

If you want to buy a stock that is better than Conifer Holdings, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.