Progyny, Inc.'s (NASDAQ:PGNY) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Progyny to hold its Annual General Meeting on 22nd of May
• Total pay for CEO Pete Anevski includes US$780.0k salary
• The overall pay is 79% below the industry average
• Progyny's EPS declined by 0.2% over the past three years while total shareholder loss over the past three years was 38%

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The underwhelming performance at Progyny, Inc. (NASDAQ:PGNY) recently has probably not pleased shareholders. At the upcoming AGM on 22nd of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. From our analysis below, we think CEO compensation looks appropriate for now.

Check out our latest analysis for Progyny

Comparing Progyny, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Progyny, Inc. has a market capitalization of US$1.9b, and reported total annual CEO compensation of US$1.4m for the year to December 2024. That's a notable increase of 24% on last year. We note that the salary of US$780.0k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the American Healthcare industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$6.4m. That is to say, Pete Anevski is paid under the industry median. Furthermore, Pete Anevski directly owns US$8.4m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that Progyny pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Progyny, Inc.'s Growth

Over the last three years, Progyny, Inc. has not seen its earnings per share change much, though they have deteriorated slightly. In the last year, its revenue is up 9.5%.

The lack of EPS growth is certainly uninspiring. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Progyny, Inc. Been A Good Investment?

Few Progyny, Inc. shareholders would feel satisfied with the return of -38% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

Whatever your view on compensation, you might want to check if insiders are buying or selling Progyny shares (free trial).

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.

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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.