Shareholders Will Most Likely Find CoreCivic, Inc.'s (NYSE:CXW) CEO Compensation Acceptable
Key Insights
- CoreCivic to hold its Annual General Meeting on 15th of May
- CEO Damon Hininger's total compensation includes salary of US$1.09m
- Total compensation is similar to the industry average
- Over the past three years, CoreCivic's EPS grew by 7.8% and over the past three years, the total shareholder return was 118%
CEO Damon Hininger has done a decent job of delivering relatively good performance at CoreCivic, Inc. (NYSE:CXW) 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 15th of May. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for CoreCivic
How Does Total Compensation For Damon Hininger Compare With Other Companies In The Industry?
According to our data, CoreCivic, Inc. has a market capitalization of US$2.5b, and paid its CEO total annual compensation worth US$7.5m over the year to December 2024. That's a notable increase of 29% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
On examining similar-sized companies in the American Commercial Services industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$7.2m. So it looks like CoreCivic compensates Damon Hininger in line with the median for the industry. Furthermore, Damon Hininger directly owns US$18m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.1m | US$1.1m | 15% |
| Other | US$6.4m | US$4.7m | 85% |
| Total Compensation | US$7.5m | US$5.8m | 100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. In CoreCivic'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.
A Look at CoreCivic, Inc.'s Growth Numbers
CoreCivic, Inc. has seen its earnings per share (EPS) increase by 7.8% a year over the past three years. It achieved revenue growth of 3.4% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has CoreCivic, Inc. Been A Good Investment?
Boasting a total shareholder return of 118% over three years, CoreCivic, 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.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
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. We did our research and identified 3 warning signs (and 1 which shouldn't be ignored) in CoreCivic we think you should know about.
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.
Valuation is complex, but we're here to simplify it.
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