Under the guidance of CEO Vinit Asar, Hanger, Inc. (NYSE:HNGR) 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 20 May 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Comparing Hanger, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Hanger, Inc. has a market capitalization of US$949m, and reported total annual CEO compensation of US$7.9m for the year to December 2020. That's a notable increase of 61% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$437k.
On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$2.5m. This suggests that Vinit Asar is paid more than the median for the industry. What's more, Vinit Asar holds US$17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. Hanger sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Hanger, Inc.'s Growth Numbers
Over the past three years, Hanger, Inc. has seen its earnings per share (EPS) grow by 119% per year. It saw its revenue drop 8.3% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Hanger, Inc. Been A Good Investment?
Hanger, Inc. has served shareholders reasonably well, with a total return of 30% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which make us uncomfortable) in Hanger we think you should know about.
Important note: Hanger 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.
This article by Simply Wall St is general in nature. 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.
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