Most Shareholders Will Probably Agree With CNO Financial Group, Inc.'s (NYSE:CNO) CEO Compensation

Key Insights

• CNO Financial Group's Annual General Meeting to take place on 9th of May
• Total pay for CEO Gary Bhojwani includes US$1.06m salary
• The overall pay is comparable to the industry average
• Over the past three years, CNO Financial Group's EPS grew by 2.0% and over the past three years, the total shareholder return was 8.5%

CEO Gary Bhojwani has done a decent job of delivering relatively good performance at CNO Financial Group, Inc. (NYSE:CNO) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of May. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for CNO Financial Group

How Does Total Compensation For Gary Bhojwani Compare With Other Companies In The Industry?

Our data indicates that CNO Financial Group, Inc. has a market capitalization of US$2.9b, and total annual CEO compensation was reported as US$9.8m for the year to December 2023. That's a notable increase of 12% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

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$8.3m. This suggests that CNO Financial Group remunerates its CEO largely in line with the industry average. Moreover, Gary Bhojwani also holds US$20m worth of CNO Financial Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$1.1m	US$1.0m	11%
Other	US$8.7m	US$7.7m	89%
Total Compensation	US$9.8m	US$8.8m	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. It's interesting to note that CNO Financial Group 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.

A Look at CNO Financial Group, Inc.'s Growth Numbers

CNO Financial Group, Inc. has seen its earnings per share (EPS) increase by 2.0% a year over the past three years. Its revenue is up 15% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 CNO Financial Group, Inc. Been A Good Investment?

CNO Financial Group, Inc. has generated a total shareholder return of 8.5% 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for CNO Financial Group that investors should be aware of in a dynamic business environment.

Switching gears from CNO Financial Group, 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.

Have 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.