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Under the guidance of CEO Paresh Patel, HCI Group, Inc. (NYSE:HCI) 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 03 June 2021. However, some shareholders may still want to keep CEO compensation within reason.
Comparing HCI Group, Inc.'s CEO Compensation With the industry
According to our data, HCI Group, Inc. has a market capitalization of US$668m, and paid its CEO total annual compensation worth US$5.2m over the year to December 2020. We note that's a decrease of 14% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$987k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.6m. Hence, we can conclude that Paresh Patel is remunerated higher than the industry median. Moreover, Paresh Patel also holds US$66m worth of HCI Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. Although there is a difference in how total compensation is set, HCI Group more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
HCI Group, Inc.'s Growth
HCI Group, Inc.'s earnings per share (EPS) grew 46% per year over the last three years. Its revenue is up 32% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 HCI Group, Inc. Been A Good Investment?
Most shareholders would probably be pleased with HCI Group, Inc. for providing a total return of 109% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for HCI Group (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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