Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Doug Dirks became the CEO of Employers Holdings, Inc. (NYSE:EIG) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Doug Dirks's Compensation Compare With Similar Sized Companies?
Our data indicates that Employers Holdings, Inc. is worth US$1.4b, and total annual CEO compensation is US$3.8m. (This number is for the twelve months until December 2018). That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at US$916k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$3.7m.
That means Doug Dirks receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Employers Holdings has changed over time.
Is Employers Holdings, Inc. Growing?
On average over the last three years, Employers Holdings, Inc. has grown earnings per share (EPS) by 15% each year (using a line of best fit). It achieved revenue growth of 5.3% over the last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Employers Holdings, Inc. Been A Good Investment?
I think that the total shareholder return of 51%, over three years, would leave most Employers Holdings, 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.
Doug Dirks is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Employers Holdings shares (free trial).
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 firstname.lastname@example.org. 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.