We Think Shareholders Will Probably Be Generous With Elevance Health, Inc.'s (NYSE:ELV) CEO Compensation

Key Insights

• Elevance Health will host its Annual General Meeting on 15th of May
• CEO Gail Boudreaux's total compensation includes salary of US$1.60m
• The total compensation is similar to the average for the industry
• Elevance Health's total shareholder return over the past three years was 42% while its EPS grew by 12% over the past three years

We have been pretty impressed with the performance at Elevance Health, Inc. (NYSE:ELV) recently and CEO Gail Boudreaux deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 15th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Elevance Health

How Does Total Compensation For Gail Boudreaux Compare With Other Companies In The Industry?

According to our data, Elevance Health, Inc. has a market capitalization of US$125b, and paid its CEO total annual compensation worth US$22m over the year to December 2023. That's a fairly small increase of 4.6% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.6m.

In comparison with other companies in the American Healthcare industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$17m. From this we gather that Gail Boudreaux is paid around the median for CEOs in the industry. Moreover, Gail Boudreaux also holds US$77m worth of Elevance 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$1.6m	US$1.6m	7%
Other	US$20m	US$19m	93%
Total Compensation	US$22m	US$21m	100%

On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. Elevance Health sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Elevance Health, Inc.'s Growth

Elevance Health, Inc.'s earnings per share (EPS) grew 12% per year over the last three years. Its revenue is up 6.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Elevance Health, Inc. Been A Good Investment?

Boasting a total shareholder return of 42% over three years, Elevance Health, 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 Elevance Health that you should be aware of before investing.

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.