Dino Robusto became the CEO of CNA Financial Corporation (NYSE:CNA) in 2016. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dino Robusto's Compensation Compare With Similar Sized Companies?
According to our data, CNA Financial Corporation has a market capitalization of US$12b, and paid its CEO total annual compensation worth US$10m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Dino Robusto 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.
You can see, below, how CEO compensation at CNA Financial has changed over time.
Is CNA Financial Corporation Growing?
Over the last three years CNA Financial Corporation has shrunk its earnings per share by an average of 1.6% per year (measured with a line of best fit). In the last year, its revenue is up 2.1%.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has CNA Financial Corporation Been A Good Investment?
Most shareholders would probably be pleased with CNA Financial Corporation for providing a total return of 35% 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.
Dino Robusto is paid around what is normal the leaders of larger companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we can't see a reason to suggest the pay is inappropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CNA Financial.
If you want to buy a stock that is better than CNA Financial, this free list of high return, low debt companies is a great place to look.
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