Shareholders May Be More Conservative With Tenet Healthcare Corporation's (NYSE:THC) CEO Compensation For Now

Key Insights

• Tenet Healthcare's Annual General Meeting to take place on 22nd of May
• Salary of US$1.50m is part of CEO Saum Sutaria's total remuneration
• The total compensation is 58% higher than the average for the industry
• Over the past three years, Tenet Healthcare's EPS grew by 21% and over the past three years, the total shareholder return was 157%

Our free stock report includes 3 warning signs investors should be aware of before investing in Tenet Healthcare. Read for free now.

CEO Saum Sutaria has done a decent job of delivering relatively good performance at Tenet Healthcare Corporation (NYSE:THC) recently. As shareholders go into the upcoming AGM on 22nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Tenet Healthcare

How Does Total Compensation For Saum Sutaria Compare With Other Companies In The Industry?

Our data indicates that Tenet Healthcare Corporation has a market capitalization of US$15b, and total annual CEO compensation was reported as US$25m for the year to December 2024. We note that's an increase of 33% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.

On comparing similar companies in the American Healthcare industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$16m. This suggests that Saum Sutaria is paid more than the median for the industry. What's more, Saum Sutaria holds US$60m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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. Tenet Healthcare pays a modest slice of remuneration through salary, as compared 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 Tenet Healthcare Corporation's Growth Numbers

Tenet Healthcare Corporation has seen its earnings per share (EPS) increase by 21% a year over the past three years. In the last year, its revenue is down 1.8%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Tenet Healthcare Corporation Been A Good Investment?

Boasting a total shareholder return of 157% over three years, Tenet Healthcare Corporation 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...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Tenet Healthcare (1 is significant!) that you should be aware of before investing here.

Switching gears from Tenet Healthcare, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.