Al Zucaro has been the CEO of Old Republic International Corporation (NYSE:ORI) since 1990. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Al Zucaro's Compensation Compare With Similar Sized Companies?
According to our data, Old Republic International Corporation has a market capitalization of US$6.8b, and paid its CEO total annual compensation worth US$3.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$937k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Old Republic International, below.
Is Old Republic International Corporation Growing?
On average over the last three years, Old Republic International Corporation has grown earnings per share (EPS) by 12% each year (using a line of best fit). Its revenue is up 4.7% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Old Republic International Corporation Been A Good Investment?
I think that the total shareholder return of 56%, over three years, would leave most Old Republic International Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Old Republic International Corporation pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Al Zucaro deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. So you may want to check if insiders are buying Old Republic International shares with their own money (free access).
If you want to buy a stock that is better than Old Republic International, this free list of high return, low debt companies is a great place to look.
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