The Men Who Run Admiral Group plc (ADM)

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Admiral’s eight-strong team of non-execs look capable of holding management to account. There is a fair proportion of insurance sector executives, including the former CEO of Direct Line insurance and a former insurance sector finance director.

Below market remuneration
The two founder directors have below-market remuneration and no pension contribution. Engelhardt’s £374 thousand total remuneration in 2012 must be the lowest of any CEO in the FTSE 100.

I analyze management teams from five different angles to help work out a verdict. Here’s my assessment:

1. Reputation. Management CVs and track record.Self-made. Score 4/5
2. Performance. Success at the company.Excellent. Score 5/5
3. Board Composition. Skills, experience, balanceStrong. It might be time to change chairman. Score 3/5
4. Remuneration. Fairness of pay, link to performance.Below-market. Score 4/5
5. Directors’ Holdings, compared to their pay.Non-founders have decent holdings too. Score 4/5

Overall, Admiral scores 20 out of 25, a good result. Admiral Group plc (LON:ADM)’s founder directors have made the company the success story it is, while a relatively newer FD and a strong non-exec team provide external perspective.

I’ve collated all my FTSE 100 boardroom verdicts on this summary page.

Buffett’s favorite FTSE share
Legendary investor Warren Buffett has always looked for impressive management teams when picking stocks. His recent acquisition, H.J. Heinz Company (NYSE:HNZ), has long had a reputation for strong management. Indeed Buffett praised its “excellent management” alongside its high quality products and continuous innovation.

The article The Men Who Run Admiral Group originally appeared on Fool.com and is written by Tony Reading.

Tony does not own any shares mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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