Jim Pozzi has been the CEO of American National Insurance Company (NASDAQ:ANAT) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Jim Pozzi's Compensation Compare With Similar Sized Companies?
According to our data, American National Insurance Company has a market capitalization of US$3.1b, and paid its CEO total annual compensation worth US$4.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$994k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
So Jim Pozzi is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at American National Insurance has changed from year to year.
Is American National Insurance Company Growing?
Over the last three years American National Insurance Company has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). Its revenue is up 2.8% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but 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 6.5% over three years, American National Insurance Company has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
Jim Pozzi is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if American National Insurance insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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