Rod Martin has been the CEO of Voya Financial, Inc. (NYSE:VOYA) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Rod Martin's Compensation Compare With Similar Sized Companies?
Our data indicates that Voya Financial, Inc. is worth US$8.2b, and total annual CEO compensation was reported as US$11m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.7m.
It would therefore appear that Voya Financial, Inc. pays Rod Martin more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Voya Financial, below.
Is Voya Financial, Inc. Growing?
On average over the last three years, Voya Financial, Inc. has grown earnings per share (EPS) by 81% each year (using a line of best fit). Its revenue is up 5.2% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Voya Financial, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Voya Financial, Inc. for providing a total return of 53% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Voya Financial, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Voya Financial shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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