Why We Think Jackson Financial Inc.'s (NYSE:JXN) CEO Compensation Is Not Excessive At All
Key Insights
- Jackson Financial will host its Annual General Meeting on 22nd of May
- Total pay for CEO Laura Prieskorn includes US$1.08m salary
- Total compensation is similar to the industry average
- Jackson Financial's EPS declined by 65% over the past three years while total shareholder return over the past three years was 193%
Under the guidance of CEO Laura Prieskorn, Jackson Financial Inc. (NYSE:JXN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of May. We present our case of why we think CEO compensation looks fair.
View our latest analysis for Jackson Financial
Comparing Jackson Financial Inc.'s CEO Compensation With The Industry
Our data indicates that Jackson Financial Inc. has a market capitalization of US$6.2b, and total annual CEO compensation was reported as US$12m for the year to December 2024. We note that's an increase of 11% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
On comparing similar companies from the American Diversified Financial industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$10m. From this we gather that Laura Prieskorn is paid around the median for CEOs in the industry. Furthermore, Laura Prieskorn directly owns US$29m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.1m | US$1.0m | 9% |
| Other | US$11m | US$10.0m | 91% |
| Total Compensation | US$12m | US$11m | 100% |
On an industry level, around 12% of total compensation represents salary and 88% is other remuneration. It's interesting to note that Jackson Financial allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Jackson Financial Inc.'s Growth
Jackson Financial Inc. has reduced its earnings per share by 65% a year over the last three years. It achieved revenue growth of 111% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Jackson Financial Inc. Been A Good Investment?
Most shareholders would probably be pleased with Jackson Financial Inc. for providing a total return of 193% 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...
Although the company has performed relatively well, we still think there are some areas that could be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.
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 3 warning signs for Jackson Financial that investors should look into moving forward.
Switching gears from Jackson Financial, 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.
Valuation is complex, but we're here to simplify it.
Discover if Jackson Financial might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave 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.