In This Article:
Key Insights
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Safety Insurance Group to hold its Annual General Meeting on 15th of May
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Salary of US$800.0k is part of CEO George Murphy's total remuneration
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Total compensation is 65% below industry average
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Over the past three years, Safety Insurance Group's EPS fell by 48% and over the past three years, the total shareholder return was 11%
Shareholders will be pleased by the robust performance of Safety Insurance Group, Inc. (NASDAQ:SAFT) recently and this will be kept in mind in the upcoming AGM on 15th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.
Check out our latest analysis for Safety Insurance Group
Comparing Safety Insurance Group, Inc.'s CEO Compensation With The Industry
According to our data, Safety Insurance Group, Inc. has a market capitalization of US$1.2b, and paid its CEO total annual compensation worth US$2.0m over the year to December 2023. We note that's a decrease of 29% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$800k.
For comparison, other companies in the American Insurance industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.6m. Accordingly, Safety Insurance Group pays its CEO under the industry median. What's more, George Murphy holds US$8.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | US$800k | US$800k | 41% |
| Other | US$1.2m | US$2.0m | 59% |
| Total Compensation | US$2.0m | US$2.8m | 100% |
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. According to our research, Safety Insurance Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Safety Insurance Group, Inc.'s Growth Numbers
Safety Insurance Group, Inc. has reduced its earnings per share by 48% a year over the last three years. In the last year, its revenue is up 17%.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.