Key Insights

• Everest Group will host its Annual General Meeting on 15th of May

• Total pay for CEO Juan Andrade includes US$1.25m salary

• Total compensation is similar to the industry average

• Everest Group's EPS grew by 46% over the past three years while total shareholder return over the past three years was 55%

We have been pretty impressed with the performance at Everest Group, Ltd. (NYSE:EG) recently and CEO Juan Andrade deserves a mention for their role in it. Coming up to the next AGM on 15th of May, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Everest Group

Comparing Everest Group, Ltd.'s CEO Compensation With The Industry

Our data indicates that Everest Group, Ltd. has a market capitalization of US$16b, and total annual CEO compensation was reported as US$9.9m for the year to December 2023. That's a notable increase of 8.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.

In comparison with other companies in the American Insurance industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$14m. From this we gather that Juan Andrade is paid around the median for CEOs in the industry. What's more, Juan Andrade holds US$23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Everest 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.

A Look at Everest Group, Ltd.'s Growth Numbers

Everest Group, Ltd.'s earnings per share (EPS) grew 46% per year over the last three years. Its revenue is up 21% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Everest Group, Ltd. Been A Good Investment?

We think that the total shareholder return of 55%, over three years, would leave most Everest Group, Ltd. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Everest Group that you should be aware of before investing.

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.