Here's Why Palomar Holdings, Inc.'s (NASDAQ:PLMR) CEO May Deserve A Raise

Key Insights

• Palomar Holdings to hold its Annual General Meeting on 22nd of May
• Total pay for CEO Mac Armstrong includes US$997.1k salary
• Total compensation is 33% below industry average
• Over the past three years, Palomar Holdings' EPS grew by 43% and over the past three years, the total shareholder return was 167%

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

The impressive results at Palomar Holdings, Inc. (NASDAQ:PLMR) recently will be great news for shareholders. At the upcoming AGM on 22nd of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Palomar Holdings

How Does Total Compensation For Mac Armstrong Compare With Other Companies In The Industry?

According to our data, Palomar Holdings, Inc. has a market capitalization of US$4.2b, and paid its CEO total annual compensation worth US$5.5m over the year to December 2024. That's a notable increase of 54% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$997k.

For comparison, other companies in the American Insurance industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$8.2m. Accordingly, Palomar Holdings pays its CEO under the industry median. What's more, Mac Armstrong holds US$73m 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$997k	US$850k	18%
Other	US$4.5m	US$2.7m	82%
Total Compensation	US$5.5m	US$3.5m	100%

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. Palomar Holdings pays out 18% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Palomar Holdings, Inc.'s Growth Numbers

Over the past three years, Palomar Holdings, Inc. has seen its earnings per share (EPS) grow by 43% per year. In the last year, its revenue is up 51%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Palomar Holdings, Inc. Been A Good Investment?

Boasting a total shareholder return of 167% over three years, Palomar Holdings, Inc. has done well by shareholders. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Palomar Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Palomar Holdings, 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.