Here's Why Primerica, Inc.'s (NYSE:PRI) CEO May Deserve A Raise

Key Insights

• Primerica will host its Annual General Meeting on 8th of May
• Total pay for CEO Glenn Williams includes US$600.0k salary
• The overall pay is 48% below the industry average
• Primerica's EPS grew by 20% over the past three years while total shareholder return over the past three years was 36%

Shareholders will be pleased by the impressive results for Primerica, Inc. (NYSE:PRI) recently and CEO Glenn Williams has played a key role. At the upcoming AGM on 8th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Primerica

How Does Total Compensation For Glenn Williams Compare With Other Companies In The Industry?

According to our data, Primerica, Inc. has a market capitalization of US$7.4b, and paid its CEO total annual compensation worth US$4.2m over the year to December 2023. Notably, that's a decrease 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$600k.

On examining similar-sized companies in the American Insurance industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$8.0m. Accordingly, Primerica pays its CEO under the industry median. Moreover, Glenn Williams also holds US$11m worth of Primerica 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$600k	US$700k	14%
Other	US$3.6m	US$4.1m	86%
Total Compensation	US$4.2m	US$4.8m	100%

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Although there is a difference in how total compensation is set, Primerica more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Primerica, Inc.'s Growth

Primerica, Inc.'s earnings per share (EPS) grew 20% per year over the last three years. In the last year, its revenue is up 3.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Primerica, Inc. Been A Good Investment?

We think that the total shareholder return of 36%, over three years, would leave most Primerica, 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Primerica that you should be aware of before investing.

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.

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.