Key Insights
- White Mountains Insurance Group will host its Annual General Meeting on 22nd of May
- CEO George Rountree's total compensation includes salary of US$600.0k
- The overall pay is comparable to the industry average
- White Mountains Insurance Group's total shareholder return over the past three years was 52% while its EPS grew by 80% over the past three years
The performance at White Mountains Insurance Group, Ltd. (NYSE:WTM) has been quite strong recently and CEO George Rountree has played a role in it. Coming up to the next AGM on 22nd of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for White Mountains Insurance Group
Comparing White Mountains Insurance Group, Ltd.'s CEO Compensation With The Industry
According to our data, White Mountains Insurance Group, Ltd. has a market capitalization of US$4.5b, and paid its CEO total annual compensation worth US$7.4m over the year to December 2024. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.
On comparing similar companies from the American Insurance industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$8.2m. So it looks like White Mountains Insurance Group compensates George Rountree in line with the median for the industry. What's more, George Rountree holds US$43m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$600k | US$585k | 8% |
| Other | US$6.8m | US$7.0m | 92% |
| Total Compensation | US$7.4m | US$7.6m | 100% |
On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that White Mountains Insurance Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
White Mountains Insurance Group, Ltd.'s Growth
White Mountains Insurance Group, Ltd.'s earnings per share (EPS) grew 80% per year over the last three years. Revenue was pretty flat on last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has White Mountains Insurance Group, Ltd. Been A Good Investment?
Most shareholders would probably be pleased with White Mountains Insurance Group, Ltd. for providing a total return of 52% over three years. 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.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for White Mountains Insurance Group 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.