Yahoo Finance Is Everest Re Group, Ltd. (NYSE:RE) Overpaying Its CEO?
In 2014 Dom Addesso was appointed CEO of Everest Re Group, Ltd. (NYSE:RE). First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. 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.
View our latest analysis for Everest Re Group
How Does Dom Addesso's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Everest Re Group, Ltd. has a market cap of US$9.9b, and is paying total annual CEO compensation of US$7.1m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.2m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
A first glance this seems like a real positive for shareholders, since Dom Addesso is paid less than the average total compensation paid by other large companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Everest Re Group has changed over time.
Is Everest Re Group, Ltd. Growing?
Everest Re Group, Ltd. has reduced its earnings per share by an average of 36% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 6.6% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Everest Re Group, Ltd. Been A Good Investment?
Boasting a total shareholder return of 36% over three years, Everest Re Group, Ltd. has done well by shareholders. 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.
In Summary...
It appears that Everest Re Group, Ltd. remunerates its CEO below most large companies.
Dom Addesso is paid less than CEOs of other large companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. Shareholders may want to check for free if Everest Re Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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. Thank you for reading.
