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Does Employers Holdings, Inc.'s (NYSE:EIG) CEO Salary Compare Well With Others?

Simply Wall St

Doug Dirks became the CEO of Employers Holdings, Inc. (NYSE:EIG) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Employers Holdings

How Does Doug Dirks's Compensation Compare With Similar Sized Companies?

Our data indicates that Employers Holdings, Inc. is worth US$1.3b, and total annual CEO compensation was reported as US$3.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$916k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.

So Doug Dirks is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Employers Holdings has changed over time.

NYSE:EIG CEO Compensation, October 14th 2019
NYSE:EIG CEO Compensation, October 14th 2019

Is Employers Holdings, Inc. Growing?

Over the last three years Employers Holdings, Inc. has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). In the last year, its revenue is up 3.6%.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.

Has Employers Holdings, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Employers Holdings, Inc. for providing a total return of 44% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Doug Dirks is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Employers Holdings (free visualization of insider trades).

Important note: Employers Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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. Thank you for reading.