Is Globe Life Inc.'s (NYSE:GL) CEO Overpaid Relative To Its Peers?
Gary Coleman has been the CEO of Globe Life Inc. (NYSE:GL) since 2012. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. 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.
See our latest analysis for Globe Life
How Does Gary Coleman's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Globe Life Inc. has a market cap of US$12b, and reported total annual CEO compensation of US$7.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$920k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Gary Coleman is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Globe Life has changed from year to year.
Is Globe Life Inc. Growing?
On average over the last three years, Globe Life Inc. has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue is up 3.7%.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Globe Life Inc. Been A Good Investment?
Most shareholders would probably be pleased with Globe Life Inc. for providing a total return of 48% over three years. 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.
In Summary...
Gary Coleman is paid around what is normal the leaders of larger companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Globe Life (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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