Key Insights

• CNA Financial to hold its Annual General Meeting on 1st of May
• Total pay for CEO Dino Robusto includes US$1.25m salary
• The total compensation is similar to the average for the industry
• CNA Financial's total shareholder return over the past three years was 16% while its EPS grew by 21% over the past three years

Under the guidance of CEO Dino Robusto, CNA Financial Corporation (NYSE:CNA) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 1st of May. Here is our take on why we think the CEO compensation looks appropriate.

How Does Total Compensation For Dino Robusto Compare With Other Companies In The Industry?

At the time of writing, our data shows that CNA Financial Corporation has a market capitalization of US$12b, and reported total annual CEO compensation of US$16m for the year to December 2023. That's a fairly small increase of 6.7% over the previous 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$15m. This suggests that CNA Financial remunerates its CEO largely in line with the industry average. Furthermore, Dino Robusto directly owns US$29m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. It's interesting to note that CNA Financial allocates a smaller portion of compensation to salary in comparison to the broader 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 CNA Financial Corporation's Growth Numbers

CNA Financial Corporation's earnings per share (EPS) grew 21% per year over the last three years. It achieved revenue growth of 12% over the 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 decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has CNA Financial Corporation Been A Good Investment?

CNA Financial Corporation has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for CNA Financial that investors should look into moving forward.

Switching gears from CNA Financial, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.