Our Take On Selective Insurance Group, Inc.’s (NASDAQ:SIGI) CEO Salary
Greg Murphy has been the CEO of Selective Insurance Group, Inc. (NASDAQ:SIGI) since 1999. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Selective Insurance Group
How Does Greg Murphy’s Compensation Compare With Similar Sized Companies?
Our data indicates that Selective Insurance Group, Inc. is worth US$3.6b, and total annual CEO compensation is US$5.7m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$950k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
That means Greg Murphy 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 Selective Insurance Group has changed over time.
Is Selective Insurance Group, Inc. Growing?
Over the last three years Selective Insurance Group, Inc. has shrunk its earnings per share by an average of 2.7% per year. Its revenue is up 6.5% over last year.
In the last three years the company has failed to grow earnings per s. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Selective Insurance Group, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Selective Insurance Group, Inc. for providing a total return of 116% over three years. 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.
In Summary…
Remuneration for Greg Murphy is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but it’s nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Selective Insurance Group (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
