Key Insights
- Ensign Group to hold its Annual General Meeting on 15th of May
- CEO Barry Port's total compensation includes salary of US$533.3k
- The total compensation is similar to the average for the industry
- Over the past three years, Ensign Group's EPS grew by 15% and over the past three years, the total shareholder return was 81%
The performance at The Ensign Group, Inc. (NASDAQ:ENSG) has been quite strong recently and CEO Barry Port has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 15th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for Ensign Group
How Does Total Compensation For Barry Port Compare With Other Companies In The Industry?
At the time of writing, our data shows that The Ensign Group, Inc. has a market capitalization of US$7.6b, and reported total annual CEO compensation of US$11m for the year to December 2024. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$533k.
For comparison, other companies in the American Healthcare industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$11m. So it looks like Ensign Group compensates Barry Port in line with the median for the industry. Furthermore, Barry Port directly owns US$29m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$533k | US$518k | 5% |
| Other | US$10m | US$11m | 95% |
| Total Compensation | US$11m | US$11m | 100% |
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Ensign Group has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
The Ensign Group, Inc.'s Growth
Over the past three years, The Ensign Group, Inc. has seen its earnings per share (EPS) grow by 15% per year. Its revenue is up 15% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 The Ensign Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 81% over three years, The Ensign Group, 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.
To Conclude...
Ensign Group primarily uses non-salary benefits to reward its CEO. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
Shareholders may want to check for free if Ensign Group insiders are buying or selling shares.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.