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Chris Swift became the CEO of The Hartford Financial Services Group, Inc. (NYSE:HIG) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Chris Swift's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The Hartford Financial Services Group, Inc. has a market cap of US$19b, and is paying total annual CEO compensation of US$14m. (This is based on the year to December 2018). That's just a smallish increase of 5.9% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$12m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Chris Swift receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Hartford Financial Services Group, below.
Is The Hartford Financial Services Group, Inc. Growing?
The Hartford Financial Services Group, Inc. has reduced its earnings per share by an average of 2.5% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 8.6% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has The Hartford Financial Services Group, Inc. Been A Good Investment?
The Hartford Financial Services Group, Inc. has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Chris Swift is close enough to the median pay for a CEO of a large company .
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We wouldn't say the CEO pay is too high, but it's probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hartford Financial Services Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.