Marita Zuraitis has been the CEO of Horace Mann Educators Corporation (NYSE:HMN) since 2013, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also assess whether Horace Mann Educators pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Horace Mann Educators Corporation’s CEO Compensation With the industry
At the time of writing, our data shows that Horace Mann Educators Corporation has a market capitalization of US$1.6b, and reported total annual CEO compensation of US$4.2m for the year to December 2019. Notably, that’s an increase of 17% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$925k.
In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$3.3m. So it looks like Horace Mann Educators compensates Marita Zuraitis in line with the median for the industry. Furthermore, Marita Zuraitis directly owns US$2.7m worth of shares in the company.
On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. Horace Mann Educators is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Horace Mann Educators Corporation’s Growth
Horace Mann Educators Corporation’s earnings per share (EPS) grew 18% per year over the last three years. Its revenue is down 5.7% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. It’s always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Horace Mann Educators Corporation Been A Good Investment?
Horace Mann Educators Corporation has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
As we touched on above, Horace Mann Educators Corporation is currently paying a compensation that’s close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth over the last three years has been impressive, although the same cannot be said for shareholder returns. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.
CEO compensation can have a massive impact on performance, but it’s just one element. We did our research and spotted 2 warning signs for Horace Mann Educators that investors should look into moving forward.
Switching gears from Horace Mann Educators, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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