We Think The Compensation For Verisk Analytics, Inc.'s (NASDAQ:VRSK) CEO Looks About Right

Key Insights

• Verisk Analytics to hold its Annual General Meeting on 20th of May
• Total pay for CEO Lee Shavel includes US$1.00m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Verisk Analytics' EPS grew by 6.3% and over the past three years, the total shareholder return was 76%

Our free stock report includes 1 warning sign investors should be aware of before investing in Verisk Analytics. Read for free now.

Under the guidance of CEO Lee Shavel, Verisk Analytics, Inc. (NASDAQ:VRSK) has performed reasonably well 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 20th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Verisk Analytics

Comparing Verisk Analytics, Inc.'s CEO Compensation With The Industry

Our data indicates that Verisk Analytics, Inc. has a market capitalization of US$42b, and total annual CEO compensation was reported as US$12m for the year to December 2024. We note that's an increase of 16% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

In comparison with other companies in the American Professional Services industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$15m. So it looks like Verisk Analytics compensates Lee Shavel in line with the median for the industry. What's more, Lee Shavel holds US$15m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$925k	8%
Other	US$11m	US$9.4m	92%
Total Compensation	US$12m	US$10m	100%

On an industry level, roughly 12% of total compensation represents salary and 88% is other remuneration. It's interesting to note that Verisk Analytics allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Verisk Analytics, Inc.'s Growth

Over the past three years, Verisk Analytics, Inc. has seen its earnings per share (EPS) grow by 6.3% per year. It achieved revenue growth of 7.2% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, 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 Verisk Analytics, Inc. Been A Good Investment?

We think that the total shareholder return of 76%, over three years, would leave most Verisk Analytics, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Verisk Analytics that investors should be aware of in a dynamic business environment.

Switching gears from Verisk Analytics, 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.