Here's Why Shareholders Should Examine Henry Schein, Inc.'s (NASDAQ:HSIC) CEO Compensation Package More Closely

Key Insights

• Henry Schein will host its Annual General Meeting on 22nd of May
• CEO Stan Bergman's total compensation includes salary of US$1.69m
• Total compensation is similar to the industry average
• Henry Schein's EPS declined by 10% over the past three years while total shareholder loss over the past three years was 14%

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The results at Henry Schein, Inc. (NASDAQ:HSIC) have been quite disappointing recently and CEO Stan Bergman bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 22nd of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Henry Schein

Comparing Henry Schein, Inc.'s CEO Compensation With The Industry

According to our data, Henry Schein, Inc. has a market capitalization of US$8.5b, and paid its CEO total annual compensation worth US$12m over the year to December 2024. Notably, that's an increase of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.7m.

For comparison, other companies in the American Healthcare industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$11m. This suggests that Henry Schein remunerates its CEO largely in line with the industry average. What's more, Stan Bergman holds US$57m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.7m	US$1.6m	15%
Other	US$9.9m	US$8.4m	85%
Total Compensation	US$12m	US$10m	100%

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. Our data reveals that Henry Schein allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Henry Schein, Inc.'s Growth

Henry Schein, Inc. has reduced its earnings per share by 10% a year over the last three years. In the last year, its revenue is up 1.8%.

The decline in EPS is a bit concerning. 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. 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 Henry Schein, Inc. Been A Good Investment?

Since shareholders would have lost about 14% over three years, some Henry Schein, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Henry Schein that investors should look into moving forward.

Important note: Henry Schein is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.