Increases to Hanger, Inc.'s (NYSE:HNGR) CEO Compensation Might Cool off for now

CEO Vinit Asar has done a decent job of delivering relatively good performance at Hanger, Inc. (NYSE:HNGR) 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 20 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Hanger

How Does Total Compensation For Vinit Asar Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hanger, Inc. has a market capitalization of US$949m, and reported total annual CEO compensation of US$7.9m for the year to December 2020. That's a notable increase of 61% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$437k.

In comparison with other companies in the industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$2.5m. Accordingly, our analysis reveals that Hanger, Inc. pays Vinit Asar north of the industry median. What's more, Vinit Asar holds US$17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that Hanger allocates a smaller portion of compensation to salary 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 Hanger, Inc.'s Growth Numbers

Over the past three years, Hanger, Inc. has seen its earnings per share (EPS) grow by 119% per year. It saw its revenue drop 8.3% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Hanger, Inc. Been A Good Investment?

Hanger, Inc. has served shareholders reasonably well, with a total return of 30% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which can't be ignored) in Hanger 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.

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