Shareholders Will Probably Hold Off On Increasing Zurich Insurance Group AG's (VTX:ZURN) CEO Compensation For The Time Being

Key Insights

• Zurich Insurance Group will host its Annual General Meeting on 9th of April
• Salary of US$1.96m is part of CEO Mario Greco's total remuneration
• The overall pay is 163% above the industry average
• Zurich Insurance Group's EPS grew by 5.3% over the past three years while total shareholder return over the past three years was 60%

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CEO Mario Greco has done a decent job of delivering relatively good performance at Zurich Insurance Group AG (VTX:ZURN) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 9th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Zurich Insurance Group

How Does Total Compensation For Mario Greco Compare With Other Companies In The Industry?

At the time of writing, our data shows that Zurich Insurance Group AG has a market capitalization of CHF88b, and reported total annual CEO compensation of US$11m for the year to December 2024. That's a slight decrease of 6.8% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$2.0m.

In comparison with other companies in the Swiss Insurance industry with market capitalizations over CHF7.1b, the reported median total CEO compensation was US$4.1m. This suggests that Mario Greco is paid more than the median for the industry. Furthermore, Mario Greco directly owns CHF69m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$2.0m	US$2.1m	18%
Other	US$8.9m	US$9.6m	82%
Total Compensation	US$11m	US$12m	100%

Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. Zurich Insurance Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Zurich Insurance Group AG's Growth Numbers

Over the past three years, Zurich Insurance Group AG has seen its earnings per share (EPS) grow by 5.3% per year. It achieved revenue growth of 7.8% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has Zurich Insurance Group AG Been A Good Investment?

Most shareholders would probably be pleased with Zurich Insurance Group AG for providing a total return of 60% over three years. 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.

In Summary...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

So you may want to check if insiders are buying Zurich Insurance Group shares with their own money (free access).

Switching gears from Zurich Insurance Group, 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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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.