Yahoo Finance We Take A Look At Why HCA Healthcare, Inc.'s (NYSE:HCA) CEO Has Earned Their Pay Packet
Key Insights
HCA Healthcare to hold its Annual General Meeting on 25th of April
Total pay for CEO Sam Hazen includes US$1.51m salary
Total compensation is similar to the industry average
HCA Healthcare's total shareholder return over the past three years was 52% while its EPS grew by 21% over the past three years
The performance at HCA Healthcare, Inc. (NYSE:HCA) has been quite strong recently and CEO Sam Hazen has played a role in it. Coming up to the next AGM on 25th of April, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
See our latest analysis for HCA Healthcare
How Does Total Compensation For Sam Hazen Compare With Other Companies In The Industry?
According to our data, HCA Healthcare, Inc. has a market capitalization of US$79b, and paid its CEO total annual compensation worth US$21m over the year to December 2023. That's a notable increase of 46% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.
For comparison, other companies in the American Healthcare industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$18m. This suggests that HCA Healthcare remunerates its CEO largely in line with the industry average. Moreover, Sam Hazen also holds US$394m worth of HCA Healthcare stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.5m | US$1.5m | 7% |
Other | US$20m | US$13m | 93% |
Total Compensation | US$21m | US$15m | 100% |
Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. In HCA Healthcare's case, non-salary compensation represents a greater slice of total remuneration, 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 HCA Healthcare, Inc.'s Growth Numbers
HCA Healthcare, Inc.'s earnings per share (EPS) grew 21% per year over the last three years. Its revenue is up 7.9% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has HCA Healthcare, Inc. Been A Good Investment?
Boasting a total shareholder return of 52% over three years, HCA Healthcare, Inc. has done well by shareholders. 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for HCA Healthcare that investors should think about before committing capital to this stock.
Important note: HCA Healthcare is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
