Shareholders Will Probably Not Have Any Issues With Hagerty, Inc.'s (NYSE:HGTY) CEO Compensation

Key Insights

• Hagerty's Annual General Meeting to take place on 3rd of June
• CEO McKeel Hagerty's total compensation includes salary of US$850.0k
• Total compensation is 59% below industry average
• Hagerty's three-year loss to shareholders was 18% while its EPS grew by 66% over the past three years

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Performance at Hagerty, Inc. (NYSE:HGTY) has been rather uninspiring recently and shareholders may be wondering how CEO McKeel Hagerty plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 3rd of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Hagerty

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

Our data indicates that Hagerty, Inc. has a market capitalization of US$3.1b, and total annual CEO compensation was reported as US$3.2m for the year to December 2024. Notably, that's an increase of 35% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$850k.

On comparing similar companies from the American Insurance industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$7.8m. Accordingly, Hagerty pays its CEO under the industry median. What's more, McKeel Hagerty holds US$8.4m 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 14% of total compensation represents salary and 86% is other remuneration. According to our research, Hagerty has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Hagerty, Inc.'s Growth

Hagerty, Inc.'s earnings per share (EPS) grew 66% per year over the last three years. In the last year, its revenue is up 18%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hagerty, Inc. Been A Good Investment?

With a three year total loss of 18% for the shareholders, Hagerty, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key focus for the board and management will be how to align the share price with fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

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

Important note: Hagerty is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.