Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Mark Casale became the CEO of Essent Group Ltd. (NYSE:ESNT) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Mark Casale's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Essent Group Ltd. has a market cap of US$4.8b, and is paying total annual CEO compensation of US$6.7m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$900k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.2m.
That means Mark Casale receives fairly typical remuneration for the CEO of a company that size. 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 Essent Group has changed over time.
Is Essent Group Ltd. Growing?
Over the last three years Essent Group Ltd. has grown its earnings per share (EPS) by an average of 35% per year (using a line of best fit). Its revenue is up 22% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Essent Group Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Essent Group Ltd. for providing a total return of 115% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Mark Casale is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Essent Group (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.
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 firstname.lastname@example.org. 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.