Marita Zuraitis became the CEO of Horace Mann Educators Corporation (NYSE:HMN) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Horace Mann Educators.
How Does Total Compensation For Marita Zuraitis Compare With Other Companies In 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$4.2m over the year to December 2019. We note that's an increase of 17% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$925k.
In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$4.2m. So it looks like Horace Mann Educators compensates Marita Zuraitis in line with the median for the industry. Furthermore, Marita Zuraitis directly owns US$2.5m worth of shares in the company.
On an industry level, around 16% of total compensation represents salary and 84% is other remuneration. According to our research, Horace Mann Educators has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Horace Mann Educators Corporation's Growth
Over the past three years, Horace Mann Educators Corporation has seen its earnings per share (EPS) grow by 22% per year. In the last year, its revenue is down 7.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 not done too badly by shareholders, with a total return of 3.1%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As we touched on above, Horace Mann Educators Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, it's admirable that over the last three years, EPS growth for the company has been impressive, though the same can't be said for investor returns. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Horace Mann Educators that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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