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Al Zucaro has been the CEO of Old Republic International Corporation (NYSE:ORI) since 1990. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Al Zucaro’s Compensation Compare With Similar Sized Companies?
According to our data, Old Republic International Corporation has a market capitalization of US$6.3b, and pays its CEO total annual compensation worth US$2.6m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$912k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$6.3m.
A first glance this seems like a real positive for shareholders, since Al Zucaro is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Old Republic International, below.
Is Old Republic International Corporation Growing?
Over the last three years Old Republic International Corporation has grown its earnings per share (EPS) by an average of 5.6% per year (using a line of best fit). It saw its revenue drop -3.9% over the last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Old Republic International Corporation Been A Good Investment?
Boasting a total shareholder return of 37% over three years, Old Republic International Corporation has done well by shareholders. 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.
It looks like Old Republic International Corporation pays its CEO less than similar sized companies.
Al Zucaro receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Shareholders may want to check for free if Old Republic International insiders are buying or selling shares.
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. On rare occasion, data errors may occur. Thank you for reading.