Chris Swift became the CEO of The Hartford Financial Services Group, Inc. (NYSE:HIG) in 2014. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Chris Swift’s Compensation Compare With Similar Sized Companies?
According to our data, The Hartford Financial Services Group, Inc. has a market capitalization of US$16b, and pays its CEO total annual compensation worth US$13m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
So Chris Swift is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Hartford Financial Services Group has changed from year to year.
Is The Hartford Financial Services Group, Inc. Growing?
Over the last three years The Hartford Financial Services Group, Inc. has shrunk its earnings per share by an average of 62% per year. In the last year, its revenue is up 26%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
You might want to check this free visual report on analyst forecasts for future earnings.
Has The Hartford Financial Services Group, Inc. Been A Good Investment?
The Hartford Financial Services Group, Inc. has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Chris Swift is close enough to the median pay for a CEO of a large company .
We think many would like to see better growth. While the CEO may not be underpaid, we don’t think the pay is too generous either. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hartford Financial Services Group (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.