Chris Swift has been the CEO of The Hartford Financial Services Group, Inc. (NYSE:HIG) since 2014, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Hartford Financial Services Group.
See our latest analysis for Hartford Financial Services Group
How Does Total Compensation For Chris Swift Compare With Other Companies In The Industry?
At the time of writing, our data shows that The Hartford Financial Services Group, Inc. has a market capitalization of US$15b, and reported total annual CEO compensation of US$15m for the year to December 2019. That’s a modest increase of 4.9% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.
On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$14m. So it looks like Hartford Financial Services Group compensates Chris Swift in line with the median for the industry. What’s more, Chris Swift holds US$22m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$1.2m | US$1.1m | 8% |
| Other | US$13m | US$13m | 92% |
| Total Compensation | US$15m | US$14m | 100% |
On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. Hartford Financial Services Group 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 The Hartford Financial Services Group, Inc.’s Growth Numbers
The Hartford Financial Services Group, Inc. has seen its earnings per share (EPS) increase by 45% a year over the past three years. In the last year, its revenue is up 8.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has The Hartford Financial Services Group, Inc. Been A Good Investment?
With a three year total loss of 15% for the shareholders, The Hartford Financial Services Group, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
As previously discussed, Chris is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But earnings growth is moving in a favorable direction, certainly a positive sign. It’s tough for us to say CEO compensation is too generous when earnings growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hartford Financial Services Group.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].
