Yahoo Finance This Is Why CNA Financial Corporation's (NYSE:CNA) CEO Compensation Looks Appropriate
Key Insights
CNA Financial to hold its Annual General Meeting on 1st of May
Total pay for CEO Dino Robusto includes US$1.25m salary
The total compensation is similar to the average for the industry
CNA Financial's total shareholder return over the past three years was 19% while its EPS grew by 21% over the past three years
CEO Dino Robusto has done a decent job of delivering relatively good performance at CNA Financial Corporation (NYSE:CNA) recently. As shareholders go into the upcoming AGM on 1st of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for CNA Financial
How Does Total Compensation For Dino Robusto Compare With Other Companies In The Industry?
According to our data, CNA Financial Corporation has a market capitalization of US$12b, and paid its CEO total annual compensation worth US$16m over the year to December 2023. That's just a smallish increase of 6.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.
For comparison, other companies in the American Insurance industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$15m. From this we gather that Dino Robusto is paid around the median for CEOs in the industry. Furthermore, Dino Robusto directly owns US$29m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.3m | US$1.3m | 8% |
Other | US$15m | US$14m | 92% |
Total Compensation | US$16m | US$15m | 100% |
On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. CNA Financial sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
CNA Financial Corporation's Growth
Over the past three years, CNA Financial Corporation has seen its earnings per share (EPS) grow by 21% per year. Its revenue is up 12% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has CNA Financial Corporation Been A Good Investment?
With a total shareholder return of 19% over three years, CNA Financial Corporation shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for CNA Financial that investors should be aware of in a dynamic business environment.
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.
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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.
