Alan Colberg has been the CEO of Assurant, Inc. (NYSE:AIZ) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Alan Colberg's Compensation Compare With Similar Sized Companies?
Our data indicates that Assurant, Inc. is worth US$7.9b, and total annual CEO compensation was reported as US$14m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$979k. We further remind readers that the CEO may face performance requirements to receive the non-salary part 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.
As you can see, Alan Colberg is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Assurant, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Assurant has changed from year to year.
Is Assurant, Inc. Growing?
Over the last three years Assurant, Inc. has shrunk its earnings per share by an average of 20% per year (measured with a line of best fit). In the last year, its revenue is up 30%.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 Assurant, Inc. Been A Good Investment?
I think that the total shareholder return of 52%, over three years, would leave most Assurant, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Assurant, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Assurant insiders are buying or selling shares.
If you want to buy a stock that is better than Assurant, this free list of high return, low debt companies is a great place to look.
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