Shareholders Would Not Be Objecting To Primerica, Inc.'s (NYSE:PRI) CEO Compensation And Here's Why

Key Insights

• Primerica to hold its Annual General Meeting on 14th of May
• Salary of US$600.0k is part of CEO Glenn Williams's total remuneration
• The overall pay is comparable to the industry average
• Primerica's EPS grew by 22% over the past three years while total shareholder return over the past three years was 136%

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The performance at Primerica, Inc. (NYSE:PRI) has been quite strong recently and CEO Glenn Williams has played a role in it. Coming up to the next AGM on 14th of May, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View 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$8.7b, and paid its CEO total annual compensation worth US$7.2m over the year to December 2024. We note that's an increase of 72% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, 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$7.7m. So it looks like Primerica compensates Glenn Williams in line with the median for the industry. Furthermore, Glenn Williams directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company's success.

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 Primerica allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Primerica, Inc.'s Growth Numbers

Primerica, Inc. has seen its earnings per share (EPS) increase by 22% a year over the past three years. Its revenue is up 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent 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 Primerica, Inc. Been A Good Investment?

We think that the total shareholder return of 136%, over three years, would leave most Primerica, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Primerica that investors should think about before committing capital to this stock.

Switching gears from Primerica, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.