Yahoo Finance Shareholders Will Most Likely Find Evolent Health, Inc.'s (NYSE:EVH) CEO Compensation Acceptable
Key Insights
Evolent Health will host its Annual General Meeting on 6th of June
Salary of US$783.3k is part of CEO Seth Blackley's total remuneration
Total compensation is similar to the industry average
Evolent Health's total shareholder return over the past three years was 17% while its EPS grew by 14% over the past three years
CEO Seth Blackley has done a decent job of delivering relatively good performance at Evolent Health, Inc. (NYSE:EVH) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 6th of June. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for Evolent Health
Comparing Evolent Health, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Evolent Health, Inc. has a market capitalization of US$2.5b, and reported total annual CEO compensation of US$8.9m for the year to December 2023. We note that's an increase of 16% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$783k.
In comparison with other companies in the American Healthcare Services industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$7.8m. So it looks like Evolent Health compensates Seth Blackley in line with the median for the industry. Moreover, Seth Blackley also holds US$13m worth of Evolent Health 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$783k | US$683k | 9% |
Other | US$8.1m | US$7.0m | 91% |
Total Compensation | US$8.9m | US$7.7m | 100% |
On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. In Evolent Health's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Evolent Health, Inc.'s Growth
Over the past three years, Evolent Health, Inc. has seen its earnings per share (EPS) grow by 14% per year. Its revenue is up 47% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few 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 Evolent Health, Inc. Been A Good Investment?
With a total shareholder return of 17% over three years, Evolent Health, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Evolent Health 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.
