Yahoo Finance Does Zurich Insurance Group AG’s (VTX:ZURN) CEO Pay Compare Well With Peers?
Mario Greco has been the CEO of Zurich Insurance Group AG (VTX:ZURN) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Zurich Insurance Group
How Does Mario Greco’s Compensation Compare With Similar Sized Companies?
Our data indicates that Zurich Insurance Group AG is worth CHF46.8b, and total annual CEO compensation is US$9m. That’s a notable increase of 10% on last year. We looked at a group of companies with market capitalizations over CHF8.0b and the median CEO compensation was CHF5m.
It would therefore appear that Zurich Insurance Group AG pays Mario Greco more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Zurich Insurance Group has changed from year to year.
Is Zurich Insurance Group AG Growing?
Over the last three years Zurich Insurance Group AG has grown its earnings per share (EPS) by an average of 7.0% per year. Its revenue is down -9.8% over last year.
I generally like to see a little revenue growth, but I’m happy with the EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Zurich Insurance Group AG Been A Good Investment?
Boasting a total shareholder return of 45% over three years, Zurich Insurance Group AG has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We examined the amount Zurich Insurance Group AG pays its CEO, and compared it to the amount paid by other large companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Zurich Insurance Group AG (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
