Horace Mann Educators Corporation's (NYSE:HMN) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Horace Mann Educators will host its Annual General Meeting on 14th of May
• Salary of US$1.04m is part of CEO Marita Zuraitis's total remuneration
• Total compensation is 62% above industry average
• Over the past three years, Horace Mann Educators' EPS fell by 15% and over the past three years, the total shareholder return was 24%

We've discovered 1 warning sign about Horace Mann Educators. View them for free.

Despite positive share price growth of 24% for Horace Mann Educators Corporation (NYSE:HMN) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 14th of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for Horace Mann Educators

Comparing Horace Mann Educators Corporation's CEO Compensation With The Industry

According to our data, Horace Mann Educators Corporation has a market capitalization of US$1.7b, and paid its CEO total annual compensation worth US$8.2m over the year to December 2024. We note that's an increase of 34% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

In comparison with other companies in the American Insurance industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$5.1m. Hence, we can conclude that Marita Zuraitis is remunerated higher than the industry median. Furthermore, Marita Zuraitis directly owns US$4.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$1.0m	13%
Other	US$7.2m	US$5.1m	87%
Total Compensation	US$8.2m	US$6.1m	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. Our data reveals that Horace Mann Educators allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Horace Mann Educators Corporation's Growth Numbers

Over the last three years, Horace Mann Educators Corporation has shrunk its earnings per share by 15% per year. Its revenue is up 6.9% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Horace Mann Educators Corporation Been A Good Investment?

Horace Mann Educators Corporation has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Horace Mann Educators that you should be aware of before investing.

Switching gears from Horace Mann Educators, 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.