Yahoo Finance Shareholders Would Not Be Objecting To The Hartford Financial Services Group, Inc.'s (NYSE:HIG) CEO Compensation And Here's Why
Key Insights
Hartford Financial Services Group's Annual General Meeting to take place on 15th of May
Total pay for CEO Chris Swift includes US$1.20m salary
The total compensation is similar to the average for the industry
Hartford Financial Services Group's EPS grew by 25% over the past three years while total shareholder return over the past three years was 68%
The performance at The Hartford Financial Services Group, Inc. (NYSE:HIG) has been quite strong recently and CEO Chris Swift has played a role in it. Coming up to the next AGM on 15th 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
See our latest analysis for Hartford Financial Services Group
Comparing The Hartford Financial Services Group, Inc.'s CEO Compensation With The Industry
Our data indicates that The Hartford Financial Services Group, Inc. has a market capitalization of US$29b, and total annual CEO compensation was reported as US$16m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.
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$14m. This suggests that Hartford Financial Services Group remunerates its CEO largely in line with the industry average. Furthermore, Chris Swift directly owns US$42m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.2m | US$1.2m | 7% |
Other | US$15m | US$15m | 93% |
Total Compensation | US$16m | US$16m | 100% |
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that Hartford Financial Services Group 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 The Hartford Financial Services Group, Inc.'s Growth Numbers
The Hartford Financial Services Group, Inc. has seen its earnings per share (EPS) increase by 25% a year over the past three years. It achieved revenue growth of 9.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 The Hartford Financial Services Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 68% over three years, The Hartford Financial Services Group, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Hartford Financial Services Group that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
