Yahoo Finance Here's Why Hercules Capital, Inc.'s (NYSE:HTGC) CEO Compensation Is The Least Of Shareholders' Concerns
Key Insights
Hercules Capital's Annual General Meeting to take place on 20th of June
Salary of US$650.0k is part of CEO Scott Bluestein's total remuneration
Total compensation is similar to the industry average
Over the past three years, Hercules Capital's EPS fell by 9.7% and over the past three years, the total shareholder return was 62%
Under the guidance of CEO Scott Bluestein, Hercules Capital, Inc. (NYSE:HTGC) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of June. We present our case of why we think CEO compensation looks fair.
See our latest analysis for Hercules Capital
How Does Total Compensation For Scott Bluestein Compare With Other Companies In The Industry?
Our data indicates that Hercules Capital, Inc. has a market capitalization of US$3.1b, and total annual CEO compensation was reported as US$8.9m for the year to December 2023. Notably, that's an increase of 21% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$650k.
For comparison, other companies in the American Capital Markets industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$7.8m. This suggests that Hercules Capital remunerates its CEO largely in line with the industry average. What's more, Scott Bluestein holds US$45m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$650k | US$650k | 7% |
Other | US$8.2m | US$6.7m | 93% |
Total Compensation | US$8.9m | US$7.4m | 100% |
Talking in terms of the industry, salary represented approximately 9% of total compensation out of all the companies we analyzed, while other remuneration made up 91% of the pie. Hercules Capital pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Hercules Capital, Inc.'s Growth
Over the last three years, Hercules Capital, Inc. has shrunk its earnings per share by 9.7% per year. It achieved revenue growth of 32% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Hercules Capital, Inc. Been A Good Investment?
Boasting a total shareholder return of 62% over three years, Hercules Capital, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The overall company performance has been commendable, however there are still areas for improvement. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Hercules Capital you should be aware of, and 1 of them doesn't sit too well with us.
Important note: Hercules Capital 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
