George Murphy has been the CEO of Safety Insurance Group Inc (NASDAQ:SAFT) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
How Does George Murphy’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Safety Insurance Group Inc has a market cap of US$1.3b, and is paying total annual CEO compensation of US$2.8m. That’s a notable increase of 50% on last year. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.5m.
So George Murphy receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Safety Insurance Group has changed from year to year.
Is Safety Insurance Group Inc Growing?
Over the last three years Safety Insurance Group Inc has grown its earnings per share (EPS) by an average of 43% per year. It achieved revenue growth of 1.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Safety Insurance Group Inc Been A Good Investment?
Boasting a total shareholder return of 78% over three years, Safety Insurance Group Inc has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
George Murphy is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Safety Insurance Group Inc.
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 email@example.com.