Key Insights

• CNO Financial Group to hold its Annual General Meeting on 9th of May
• CEO Gary Bhojwani's total compensation includes salary of US$1.06m
• The overall pay is comparable to the industry average
• Over the past three years, CNO Financial Group's EPS grew by 2.0% and over the past three years, the total shareholder return was 8.5%

CEO Gary Bhojwani has done a decent job of delivering relatively good performance at CNO Financial Group, Inc. (NYSE:CNO) recently. As shareholders go into the upcoming AGM on 9th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

How Does Total Compensation For Gary Bhojwani Compare With Other Companies In The Industry?

At the time of writing, our data shows that CNO Financial Group, Inc. has a market capitalization of US$2.9b, and reported total annual CEO compensation of US$9.8m for the year to December 2023. We note that's an increase of 12% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.

In comparison with other companies in the American Insurance industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$8.3m. So it looks like CNO Financial Group compensates Gary Bhojwani in line with the median for the industry. Furthermore, Gary Bhojwani directly owns US$20m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. CNO Financial Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CNO Financial Group, Inc.'s Growth

CNO Financial Group, Inc.'s earnings per share (EPS) grew 2.0% per year over the last three years. It achieved revenue growth of 15% over the last year.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 CNO Financial Group, Inc. Been A Good Investment?

CNO Financial Group, Inc. has not done too badly by shareholders, with a total return of 8.5%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for CNO Financial Group that investors should look into moving forward.

Important note: CNO Financial Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.