It's Unlikely That American National Group, Inc.'s (NASDAQ:ANAT) CEO Will See A Huge Pay Rise This Year

The share price of American National Group, Inc. (NASDAQ:ANAT) has struggled to grow by much over the last few years and probably has to do with the fact that earnings growth has gone backwards. Some of these issues will occupy shareholders' minds as the AGM rolls around on 22 April 2021. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

View our latest analysis for American National Group

How Does Total Compensation For Jim Pozzi Compare With Other Companies In The Industry?

According to our data, American National Group, Inc. has a market capitalization of US$3.0b, and paid its CEO total annual compensation worth US$8.5m over the year to December 2020. We note that's an increase of 8.2% 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.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$5.5m. Hence, we can conclude that Jim Pozzi is remunerated higher than the industry median. Furthermore, Jim Pozzi directly owns US$2.5m worth of shares in the company.

Component	2020	2019	Proportion (2020)
Salary	US$1.1m	US$1.0m	13%
Other	US$7.4m	US$6.8m	87%
Total Compensation	US$8.5m	US$7.9m	100%

On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. American National Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at American National Group, Inc.'s Growth Numbers

American National Group, Inc. has reduced its earnings per share by 1.8% a year over the last three years. In the last year, its revenue is down 6.6%.

The lack of EPS growth is certainly uninspiring. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has American National Group, Inc. Been A Good Investment?

American National Group, Inc. has generated a total shareholder return of 1.7% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

The flat share price growth combined with the the fact that earnings have failed to grow makes us wonder whether the share price will have any further strong momentum. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

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

Important note: American National Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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. 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.
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