We Think Shareholders Are Less Likely To Approve A Large Pay Rise For SiriusPoint Ltd.'s (NYSE:SPNT) CEO For Now

Key Insights

• SiriusPoint will host its Annual General Meeting on 20th of May
• CEO Scott Egan's total compensation includes salary of US$1.13m
• Total compensation is 73% above industry average
• Over the past three years, SiriusPoint's EPS grew by 100% and over the past three years, the total shareholder return was 220%

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Under the guidance of CEO Scott Egan, SiriusPoint Ltd. (NYSE:SPNT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for SiriusPoint

Comparing SiriusPoint Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that SiriusPoint Ltd. has a market capitalization of US$2.3b, and reported total annual CEO compensation of US$9.4m for the year to December 2024. We note that's a decrease of 9.0% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

For comparison, other companies in the American Insurance industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.4m. Accordingly, our analysis reveals that SiriusPoint Ltd. pays Scott Egan north of the industry median. Furthermore, Scott Egan directly owns US$11m 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. In SiriusPoint's case, non-salary compensation represents a greater slice of total remuneration, 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 SiriusPoint Ltd.'s Growth Numbers

SiriusPoint Ltd. has seen its earnings per share (EPS) increase by 100% a year over the past three years. In the last year, its revenue is down 4.9%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 SiriusPoint Ltd. Been A Good Investment?

We think that the total shareholder return of 220%, over three years, would leave most SiriusPoint Ltd. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for SiriusPoint that you should be aware of before investing.

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.