It's Unlikely That The Allstate Corporation's (NYSE:ALL) CEO Will See A Huge Pay Rise This Year

Key Insights

• Allstate's Annual General Meeting to take place on 29th of May
• Salary of US$1.42m is part of CEO Tom Wilson's total remuneration
• Total compensation is 121% above industry average
• Allstate's total shareholder return over the past three years was 63% while its EPS grew by 8.8% over the past three years

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Performance at The Allstate Corporation (NYSE:ALL) has been reasonably good and CEO Tom Wilson has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Allstate

How Does Total Compensation For Tom Wilson Compare With Other Companies In The Industry?

According to our data, The Allstate Corporation has a market capitalization of US$54b, and paid its CEO total annual compensation worth US$27m over the year to December 2024. We note that's an increase of 62% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.4m.

For comparison, other companies in the American Insurance industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. Accordingly, our analysis reveals that The Allstate Corporation pays Tom Wilson north of the industry median. Moreover, Tom Wilson also holds US$238m worth of Allstate stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$1.4m	US$1.4m	5%
Other	US$25m	US$15m	95%
Total Compensation	US$27m	US$16m	100%

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. In Allstate's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

The Allstate Corporation's Growth

The Allstate Corporation's earnings per share (EPS) grew 8.8% per year over the last three years. It achieved revenue growth of 11% over the last year.

This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has The Allstate Corporation Been A Good Investment?

Most shareholders would probably be pleased with The Allstate Corporation for providing a total return of 63% over three years. 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Allstate that investors should look into moving forward.

Important note: Allstate 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. 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.