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Should You Worry About Primerica, Inc.’s (NYSE:PRI) CEO Pay?

Luis Baughman

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Glenn Williams has been the CEO of Primerica, Inc. (NYSE:PRI) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Primerica

How Does Glenn Williams’s Compensation Compare With Similar Sized Companies?

According to our data, Primerica, Inc. has a market capitalization of US$5.1b, and pays its CEO total annual compensation worth US$5.2m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$750k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO compensation was US$6.3m.

That means Glenn Williams receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Primerica has changed over time.

NYSE:PRI CEO Compensation, February 19th 2019

Is Primerica, Inc. Growing?

Primerica, Inc. has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Primerica, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Primerica, Inc. for providing a total return of 182% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Glenn Williams is paid around what is normal the leaders of comparable 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! Shareholders may want to check for free if Primerica insiders are buying or selling shares.

If you want to buy a stock that is better than Primerica, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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. On rare occasion, data errors may occur. Thank you for reading.