Dino Robusto became the CEO of CNA Financial Corporation (NYSE:CNA) in 2016. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Dino Robusto's Compensation Compare With Similar Sized Companies?
According to our data, CNA Financial Corporation has a market capitalization of US$12b, and pays its CEO total annual compensation worth US$10m. (This figure is for the year to December 2018). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$12m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Dino Robusto is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at CNA Financial, below.
Is CNA Financial Corporation Growing?
On average over the last three years, CNA Financial Corporation has grown earnings per share (EPS) by 20% each year (using a line of best fit). It achieved revenue growth of 5.6% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has CNA Financial Corporation Been A Good Investment?
Most shareholders would probably be pleased with CNA Financial Corporation for providing a total return of 74% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Dino Robusto is close enough to the median pay for a CEO of a large company .
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if CNA Financial insiders are buying or selling shares.
Important note: CNA Financial may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.