Mark Casale became the CEO of Essent Group Ltd. (NYSE:ESNT) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Essent Group
How Does Mark Casale's Compensation Compare With Similar Sized Companies?
According to our data, Essent Group Ltd. has a market capitalization of US$5.1b, and paid its CEO total annual compensation worth US$6.7m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$900k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.4m.
So Mark Casale receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Essent Group, below.
Is Essent Group Ltd. Growing?
Over the last three years Essent Group Ltd. has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). In the last year, its revenue is up 21%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Essent Group Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Essent Group Ltd. for providing a total return of 59% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Mark Casale is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Essent Group insiders are buying or selling shares.
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.
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.
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