ModivCare Inc.'s (NASDAQ:MODV) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• ModivCare to hold its Annual General Meeting on 17th of June
• Salary of US$792.9k is part of CEO L. Sampson's total remuneration
• The overall pay is 157% above the industry average
• ModivCare's EPS declined by 51% over the past three years while total shareholder loss over the past three years was 97%

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ModivCare Inc. (NASDAQ:MODV) has not performed well recently and CEO L. Sampson will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 17th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for ModivCare

How Does Total Compensation For L. Sampson Compare With Other Companies In The Industry?

According to our data, ModivCare Inc. has a market capitalization of US$50m, and paid its CEO total annual compensation worth US$2.5m over the year to December 2024. That's a slight decrease of 6.4% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$793k.

In comparison with other companies in the American Healthcare industry with market capitalizations under US$200m, the reported median total CEO compensation was US$979k. Accordingly, our analysis reveals that ModivCare Inc. pays L. Sampson north of the industry median. What's more, L. Sampson holds US$51k worth of shares in the company in their own name.

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that ModivCare pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ModivCare Inc.'s Growth

Over the last three years, ModivCare Inc. has shrunk its earnings per share by 51% per year. Revenue was pretty flat on last year.

Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has ModivCare Inc. Been A Good Investment?

Few ModivCare Inc. shareholders would feel satisfied with the return of -97% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for ModivCare (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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.

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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.