Yahoo Finance Is Reinsurance Group of America, Incorporated's (NYSE:RGA) CEO Pay Justified?
Anna Manning became the CEO of Reinsurance Group of America, Incorporated (NYSE:RGA) in 2017. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Reinsurance Group of America
How Does Anna Manning's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Reinsurance Group of America, Incorporated has a market cap of US$10b, and reported total annual CEO compensation of US$6.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$992k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
Most shareholders would consider it a positive that Anna Manning takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Reinsurance Group of America, below.
Is Reinsurance Group of America, Incorporated Growing?
On average over the last three years, Reinsurance Group of America, Incorporated has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is up 5.1% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Reinsurance Group of America, Incorporated Been A Good Investment?
I think that the total shareholder return of 57%, over three years, would leave most Reinsurance Group of America, Incorporated 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...
Reinsurance Group of America, Incorporated is currently paying its CEO below what is normal for large companies.
Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Anna Manning deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Reinsurance Group of America.
If you want to buy a stock that is better than Reinsurance Group of America, this free list of high return, low debt companies is a great place to look.
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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.
