Why We Think The CEO Of Kinsale Capital Group, Inc. (NYSE:KNSL) May Soon See A Pay Rise

Key Insights

• Kinsale Capital Group will host its Annual General Meeting on 22nd of May
• CEO Michael Kehoe's total compensation includes salary of US$1.25m
• The total compensation is 48% less than the average for the industry
• Over the past three years, Kinsale Capital Group's EPS grew by 37% and over the past three years, the total shareholder return was 112%

We've discovered 1 warning sign about Kinsale Capital Group. View them for free.

The impressive results at Kinsale Capital Group, Inc. (NYSE:KNSL) recently will be great news for shareholders. At the upcoming AGM on 22nd of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for Kinsale Capital Group

Comparing Kinsale Capital Group, Inc.'s CEO Compensation With The Industry

Our data indicates that Kinsale Capital Group, Inc. has a market capitalization of US$10b, and total annual CEO compensation was reported as US$6.8m for the year to December 2024. We note that's an increase of 30% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

In comparison with other companies in the American Insurance industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$13m. Accordingly, Kinsale Capital Group pays its CEO under the industry median. Moreover, Michael Kehoe also holds US$390m worth of Kinsale Capital Group 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$1.3m	US$900k	18%
Other	US$5.5m	US$4.3m	82%
Total Compensation	US$6.8m	US$5.2m	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 Kinsale Capital Group pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Kinsale Capital Group, Inc.'s Growth

Kinsale Capital Group, Inc. has seen its earnings per share (EPS) increase by 37% a year over the past three years. It achieved revenue growth of 23% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Kinsale Capital Group, Inc. Been A Good Investment?

We think that the total shareholder return of 112%, over three years, would leave most Kinsale Capital Group, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Kinsale Capital Group that investors should look into moving forward.

Important note: Kinsale Capital Group 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.