Key Insights

• Travelers Companies will host its Annual General Meeting on 15th of May
• CEO Alan Schnitzer's total compensation includes salary of US$1.45m
• The total compensation is 61% higher than the average for the industry
• Travelers Companies' total shareholder return over the past three years was 51% while its EPS grew by 7.0% over the past three years

Under the guidance of CEO Alan Schnitzer, The Travelers Companies, Inc. (NYSE:TRV) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Alan Schnitzer Compare With Other Companies In The Industry?

At the time of writing, our data shows that The Travelers Companies, Inc. has a market capitalization of US$50b, and reported total annual CEO compensation of US$23m for the year to December 2023. That's a modest increase of 7.9% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.

For comparison, other companies in the American Insurance industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$14m. Hence, we can conclude that Alan Schnitzer is remunerated higher than the industry median. Furthermore, Alan Schnitzer directly owns US$61m 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. Travelers Companies 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.

The Travelers Companies, Inc.'s Growth

The Travelers Companies, Inc. has seen its earnings per share (EPS) increase by 7.0% a year over the past three years. It achieved revenue growth of 14% over the last year.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 The Travelers Companies, Inc. Been A Good Investment?

Boasting a total shareholder return of 51% over three years, The Travelers Companies, Inc. has done well by shareholders. 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Travelers Companies that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.