Shareholders May Be Wary Of Increasing Acadia Healthcare Company, Inc.'s (NASDAQ:ACHC) CEO Compensation Package

Key Insights

• Acadia Healthcare Company's Annual General Meeting to take place on 29th of May
• Total pay for CEO Chris Hunter includes US$1.02m salary
• The total compensation is similar to the average for the industry
• Acadia Healthcare Company's three-year loss to shareholders was 68% while its EPS was down 9.1% over the past three years

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Acadia Healthcare Company, Inc. (NASDAQ:ACHC) has not performed well recently and CEO Chris Hunter will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 29th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Acadia Healthcare Company

How Does Total Compensation For Chris Hunter Compare With Other Companies In The Industry?

Our data indicates that Acadia Healthcare Company, Inc. has a market capitalization of US$2.2b, and total annual CEO compensation was reported as US$7.1m for the year to December 2024. That's slightly lower by 4.3% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

On examining similar-sized companies in the American Healthcare industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$6.5m. From this we gather that Chris Hunter is paid around the median for CEOs in the industry. Furthermore, Chris Hunter directly owns US$6.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$1.0m	14%
Other	US$6.1m	US$6.4m	86%
Total Compensation	US$7.1m	US$7.4m	100%

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Although there is a difference in how total compensation is set, Acadia Healthcare Company more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Acadia Healthcare Company, Inc.'s Growth

Over the last three years, Acadia Healthcare Company, Inc. has shrunk its earnings per share by 9.1% per year. In the last year, its revenue is up 5.5%.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Acadia Healthcare Company, Inc. Been A Good Investment?

The return of -68% over three years would not have pleased Acadia Healthcare Company, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Acadia Healthcare Company that you should be aware of before investing.

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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.