A Look At HCI Group's (NYSE:HCI) CEO Remuneration

Paresh Patel has been the CEO of HCI Group, Inc. (NYSE:HCI) since 2011, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether HCI Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for HCI Group

Comparing HCI Group, Inc.'s CEO Compensation With the industry

Our data indicates that HCI Group, Inc. has a market capitalization of US$414m, and total annual CEO compensation was reported as US$6.1m for the year to December 2019. Notably, that's an increase of 43% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$950k.

On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.8m. Hence, we can conclude that Paresh Patel is remunerated higher than the industry median. What's more, Paresh Patel holds US$42m 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, around 16% of total compensation represents salary and 84% is other remuneration. HCI Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at HCI Group, Inc.'s Growth Numbers

Over the past three years, HCI Group, Inc. has seen its earnings per share (EPS) grow by 70% per year. It achieved revenue growth of 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing 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 HCI Group, Inc. Been A Good Investment?

Boasting a total shareholder return of 93% over three years, HCI Group, 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...

As we touched on above, HCI Group, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Paresh's performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for HCI Group you should be aware of, and 2 of them shouldn't be ignored.

Switching gears from HCI Group, 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. 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.
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