Is Primerica, Inc.’s (NYSE:PRI) CEO Being Overpaid?

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Glenn Williams became the CEO of Primerica, Inc. (NYSE:PRI) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Primerica

How Does Glenn Williams’s Compensation Compare With Similar Sized Companies?

Our data indicates that Primerica, Inc. is worth US$5.2b, and total annual CEO compensation is US$5.1m. (This figure is for the year to December 2018). That’s below the compensation, last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$750k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m.

That means Glenn Williams receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Primerica has changed from year to year.

NYSE:PRI CEO Compensation, June 13th 2019
NYSE:PRI CEO Compensation, June 13th 2019

Is Primerica, Inc. Growing?

Over the last three years Primerica, Inc. has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Primerica, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Primerica, Inc. for providing a total return of 123% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Glenn Williams is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Primerica.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.