Yahoo Finance Here's Why CNO Financial Group, Inc.'s (NYSE:CNO) CEO Compensation Is The Least Of Shareholders' Concerns
Key Insights
CNO Financial Group will host its Annual General Meeting on 9th of May
CEO Gary Bhojwani's total compensation includes salary of US$1.06m
The total compensation is similar to the average for the industry
CNO Financial Group's total shareholder return over the past three years was 8.5% while its EPS grew by 2.0% over the past three years
Under the guidance of CEO Gary Bhojwani, CNO Financial Group, Inc. (NYSE:CNO) has performed reasonably well recently. As shareholders go into the upcoming AGM on 9th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for CNO Financial Group
Comparing CNO Financial Group, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that CNO Financial Group, Inc. has a market capitalization of US$2.9b, and reported total annual CEO compensation of US$9.8m for the year to December 2023. That's a notable increase of 12% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.
On comparing similar companies from the American Insurance industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$8.3m. This suggests that CNO Financial Group remunerates its CEO largely in line with the industry average. What's more, Gary Bhojwani holds US$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.1m | US$1.0m | 11% |
Other | US$8.7m | US$7.7m | 89% |
Total Compensation | US$9.8m | US$8.8m | 100% |
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. It's interesting to note that CNO Financial Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
CNO Financial Group, Inc.'s Growth
CNO Financial Group, Inc.'s earnings per share (EPS) grew 2.0% per year over the last three years. Its revenue is up 15% over the last year.
This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has CNO Financial Group, Inc. Been A Good Investment?
CNO Financial Group, Inc. has generated a total shareholder return of 8.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for CNO Financial Group that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
