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How Should Investors React To Horace Mann Educators Corporation's (NYSE:HMN) CEO Pay?

Simply Wall St

Marita Zuraitis has been the CEO of Horace Mann Educators Corporation (NYSE:HMN) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Horace Mann Educators

How Does Marita Zuraitis's Compensation Compare With Similar Sized Companies?

Our data indicates that Horace Mann Educators Corporation is worth US$1.8b, and total annual CEO compensation was reported as US$3.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$892k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.0m.

That means Marita Zuraitis receives fairly typical remuneration for the CEO of a company that size. 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 Horace Mann Educators has changed from year to year.

NYSE:HMN CEO Compensation, November 8th 2019

Is Horace Mann Educators Corporation Growing?

On average over the last three years, Horace Mann Educators Corporation has grown earnings per share (EPS) by 7.1% each year (using a line of best fit). It achieved revenue growth of 13% over the last year.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.

Has Horace Mann Educators Corporation Been A Good Investment?

Horace Mann Educators Corporation has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Marita Zuraitis is paid around the same as most CEOs of similar size companies.

We see room for improved growth, as well as fairly unremarkable returns over the last three years. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. Shareholders may want to check for free if Horace Mann Educators insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.