Yahoo Finance Why We Think The CEO Of Primerica, Inc. (NYSE:PRI) May Soon See A Pay Rise
Key Insights
Primerica's Annual General Meeting to take place on 8th of May
Salary of US$600.0k is part of CEO Glenn Williams's total remuneration
The overall pay is 48% below the industry average
Over the past three years, Primerica's EPS grew by 20% and over the past three years, the total shareholder return was 36%
The impressive results at Primerica, Inc. (NYSE:PRI) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 8th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
Check out our latest analysis for Primerica
Comparing Primerica, Inc.'s CEO Compensation With The Industry
According to our data, Primerica, Inc. has a market capitalization of US$7.4b, and paid its CEO total annual compensation worth US$4.2m over the year to December 2023. We note that's a decrease of 13% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.
On comparing similar companies from the American Insurance industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$8.0m. That is to say, Glenn Williams is paid under the industry median. Moreover, Glenn Williams also holds US$11m worth of Primerica stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$600k | US$700k | 14% |
Other | US$3.6m | US$4.1m | 86% |
Total Compensation | US$4.2m | US$4.8m | 100% |
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. There isn't a significant difference between Primerica and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Primerica, Inc.'s Growth
Over the past three years, Primerica, Inc. has seen its earnings per share (EPS) grow by 20% per year. Its revenue is up 3.5% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Primerica, Inc. Been A Good Investment?
Boasting a total shareholder return of 36% over three years, Primerica, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Primerica that investors should look into moving forward.
Important note: Primerica is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
