Chris Swift became the CEO of The Hartford Financial Services Group Inc (NYSE:HIG) in 2014. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Chris Swift’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The Hartford Financial Services Group Inc has a market cap of US$17.4b, and is paying total annual CEO compensation of US$13m. That’s a notable increase of 30% on last year. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m.
That means Chris Swift receives fairly typical remuneration for the CEO of a large company. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Hartford Financial Services Group has changed over time.
Is The Hartford Financial Services Group Inc Growing?
The Hartford Financial Services Group Inc has reduced its earnings per share by an average of 72% a year, over the last three years. It achieved revenue growth of 17% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth wto overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
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 generated a total shareholder return of 5.8% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Chris Swift is paid around the same as most CEOs of large companies.
We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We doubt shareholders are particularly happy to see that the CEO compensation increased on last year. We’re not saying the CEO pay is too generous, but it’s probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. Shareholders may want to check for free if The Hartford Financial Services Group Inc insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.