Increases to CEO Compensation Might Be Put On Hold For Now at MetLife, Inc. (NYSE:MET)

Key Insights

• MetLife's Annual General Meeting to take place on 18th of June
• Total pay for CEO Michel Khalaf includes US$1.48m salary
• The overall pay is 36% above the industry average
• MetLife's total shareholder return over the past three years was 19% while its EPS grew by 35% over the past three years

Performance at MetLife, Inc. (NYSE:MET) has been reasonably good and CEO Michel Khalaf has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 18th of June. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for MetLife

How Does Total Compensation For Michel Khalaf Compare With Other Companies In The Industry?

According to our data, MetLife, Inc. has a market capitalization of US$50b, and paid its CEO total annual compensation worth US$21m over the year to December 2023. Notably, that's an increase of 13% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.

On comparing similar companies in the American Insurance industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$15m. Hence, we can conclude that Michel Khalaf is remunerated higher than the industry median. Furthermore, Michel Khalaf directly owns US$30m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$1.5m	US$1.4m	7%
Other	US$19m	US$17m	93%
Total Compensation	US$21m	US$18m	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. MetLife sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

MetLife, Inc.'s Growth

Over the past three years, MetLife, Inc. has seen its earnings per share (EPS) grow by 35% per year. In the last year, its revenue is down 1.7%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MetLife, Inc. Been A Good Investment?

MetLife, Inc. has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 3 warning signs for MetLife that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.