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How Much Did Donegal Group's (NASDAQ:DGIC.B) CEO Pocket Last Year?

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Simply Wall St
·3 min read
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Kevin Burke has been the CEO of Donegal Group Inc. (NASDAQ:DGIC.B) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Donegal Group.

View our latest analysis for Donegal Group

How Does Total Compensation For Kevin Burke Compare With Other Companies In The Industry?

According to our data, Donegal Group Inc. has a market capitalization of US$395m, and paid its CEO total annual compensation worth US$1.0m over the year to December 2019. Notably, that's an increase of 28% over the year before. Notably, the salary which is US$630.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$3.0m. In other words, Donegal Group pays its CEO lower than the industry median. Moreover, Kevin Burke also holds US$96k worth of Donegal Group stock directly under their own name.

Component

2019

2018

Proportion (2019)

Salary

US$630k

US$630k

61%

Other

US$404k

US$181k

39%

Total Compensation

US$1.0m

US$811k

100%

Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. According to our research, Donegal Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

A Look at Donegal Group Inc.'s Growth Numbers

Over the past three years, Donegal Group Inc. has seen its earnings per share (EPS) grow by 2.6% per year. It saw its revenue drop 1.8% over the last year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Donegal Group Inc. Been A Good Investment?

Since shareholders would have lost about 5.4% over three years, some Donegal Group Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Kevin is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But then, EPS growth is lacking and so are the returns to shareholders. So while we don't think, Kevin is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

So you may want to check if insiders are buying Donegal Group shares with their own money (free access).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.