A Quick Analysis On Conifer Holdings' (NASDAQ:CNFR) CEO Salary
Jim Petcoff became the CEO of Conifer Holdings, Inc. (NASDAQ:CNFR) in 2009, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Conifer Holdings.
See our latest analysis for Conifer Holdings
Comparing Conifer Holdings, Inc.'s CEO Compensation With the industry
According to our data, Conifer Holdings, Inc. has a market capitalization of US$30m, and paid its CEO total annual compensation worth US$561k over the year to December 2019. That's a notable decrease of 17% on last year. Notably, the salary which is US$550.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$547k. This suggests that Conifer Holdings remunerates its CEO largely in line with the industry average. Moreover, Jim Petcoff also holds US$8.0m worth of Conifer Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$550k | US$550k | 98% |
Other | US$11k | US$125k | 2% |
Total Compensation | US$561k | US$675k | 100% |
Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. Conifer Holdings has gone down a largely traditional route, paying Jim Petcoff a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Conifer Holdings, Inc.'s Growth Numbers
Conifer Holdings, Inc.'s earnings per share (EPS) grew 36% per year over the last three years. In the last year, its revenue changed by just 0.4%.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Conifer Holdings, Inc. Been A Good Investment?
Since shareholders would have lost about 53% over three years, some Conifer Holdings, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
Jim receives almost all of their compensation through a salary. As previously discussed, Jim is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, EPS growth is positive over the same time frame. Overall, we wouldn't say Jim is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Conifer Holdings that you should be aware of before investing.
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.
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.
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