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In 2008 Mark Casale was appointed CEO of Essent Group Ltd. (NYSE:ESNT). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mark Casale's Compensation Compare With Similar Sized Companies?
According to our data, Essent Group Ltd. has a market capitalization of US$5.0b, and paid its CEO total annual compensation worth US$6.7m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$900k. 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$6.5m.
That means Mark Casale receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Essent Group has changed over time.
Is Essent Group Ltd. Growing?
Over the last three years Essent Group Ltd. has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). In the last year, its revenue is up 21%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Essent Group Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Essent Group Ltd. for providing a total return of 45% 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.
Mark Casale is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Essent Group shares with their own money (free access).
If you want to buy a stock that is better than Essent Group, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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