Is Horace Mann Educators Corporation's (NYSE:HMN) CEO Pay Justified?

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Marita Zuraitis has been the CEO of Horace Mann Educators Corporation (NYSE:HMN) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Horace Mann Educators

How Does Marita Zuraitis's Compensation Compare With Similar Sized Companies?

Our data indicates that Horace Mann Educators Corporation is worth US$1.6b, and total annual CEO compensation is US$3.6m. (This figure is for the year to December 2018). Notably, that's an increase of 11% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$892k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.

So Marita Zuraitis is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Horace Mann Educators, below.

NYSE:HMN CEO Compensation, May 14th 2019
NYSE:HMN CEO Compensation, May 14th 2019

Is Horace Mann Educators Corporation Growing?

Horace Mann Educators Corporation has increased its earnings per share (EPS) by an average of 6.0% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.5%.

I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.

Has Horace Mann Educators Corporation Been A Good Investment?

With a total shareholder return of 27% over three years, Horace Mann Educators Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Marita Zuraitis is paid around the same as most CEOs of similar size companies.

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. Shareholders may want to check for free if Horace Mann Educators insiders are buying or selling shares.

Important note: Horace Mann Educators may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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