It's Unlikely That Unum Group's (NYSE:UNM) CEO Will See A Huge Pay Rise This Year

Key Insights

• Unum Group to hold its Annual General Meeting on 22nd of May
• CEO Rick McKenney's total compensation includes salary of US$1.10m
• The total compensation is 40% higher than the average for the industry
• Over the past three years, Unum Group's EPS grew by 26% and over the past three years, the total shareholder return was 148%

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Performance at Unum Group (NYSE:UNM) has been reasonably good and CEO Rick McKenney has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 22nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Unum Group

How Does Total Compensation For Rick McKenney Compare With Other Companies In The Industry?

According to our data, Unum Group has a market capitalization of US$14b, and paid its CEO total annual compensation worth US$18m over the year to December 2024. We note that's a small decrease of 6.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

In comparison with other companies in the American Insurance industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$13m. Hence, we can conclude that Rick McKenney is remunerated higher than the industry median. Furthermore, Rick McKenney directly owns US$59m 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. Unum Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Unum Group's Growth Numbers

Unum Group has seen its earnings per share (EPS) increase by 26% a year over the past three years. In the last year, its revenue is up 1.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Unum Group Been A Good Investment?

We think that the total shareholder return of 148%, over three years, would leave most Unum Group 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...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 1 warning sign for Unum Group 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.