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We Think Shareholders Are Less Likely To Approve A Large Pay Rise For CNO Financial Group, Inc.'s (NYSE:CNO) CEO For Now

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·4 min read
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Under the guidance of CEO Gary Bhojwani, CNO Financial Group, Inc. (NYSE:CNO) has performed reasonably well recently. As shareholders go into the upcoming AGM on 07 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for CNO Financial Group

How Does Total Compensation For Gary Bhojwani Compare With Other Companies In The Industry?

Our data indicates that CNO Financial Group, Inc. has a market capitalization of US$3.4b, and total annual CEO compensation was reported as US$8.3m for the year to December 2020. We note that's an increase of 22% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$5.5m. Accordingly, our analysis reveals that CNO Financial Group, Inc. pays Gary Bhojwani north of the industry median. What's more, Gary Bhojwani holds US$8.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

US$1.0m

US$1.0m

12%

Other

US$7.2m

US$5.8m

88%

Total Compensation

US$8.3m

US$6.8m

100%

Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. CNO Financial Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at CNO Financial Group, Inc.'s Growth Numbers

CNO Financial Group, Inc.'s earnings per share (EPS) grew 42% per year over the last three years. Its revenue is up 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CNO Financial Group, Inc. Been A Good Investment?

We think that the total shareholder return of 35%, over three years, would leave most CNO Financial Group, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for CNO Financial Group (of which 2 make us uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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.

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