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Despite Argo Group Limited's (LON:ARGO) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 30 September 2021. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.
See our latest analysis for Argo Group
Comparing Argo Group Limited's CEO Compensation With the industry
Our data indicates that Argo Group Limited has a market capitalization of UK£7.4m, and total annual CEO compensation was reported as US$217k for the year to December 2020. That is, the compensation was roughly the same as last year. Notably, the salary of US$217k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below UK£146m, we found that the median total CEO compensation was US$243k. So it looks like Argo Group compensates Kyriakos Rialas in line with the median for the industry. Furthermore, Kyriakos Rialas directly owns UK£1.7m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$217k | US$213k | 100% |
| Other | - | - | - |
| Total Compensation | US$217k | US$213k | 100% |
Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. At the company level, Argo Group pays Kyriakos Rialas solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Argo Group Limited's Growth Numbers
Over the last three years, Argo Group Limited has shrunk its earnings per share by 19% per year. Its revenue is up 4.4% over the last year.
The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.