Key Insights

• Molina Healthcare's Annual General Meeting to take place on 30th of April
• CEO Joe Zubretsky's total compensation includes salary of US$1.60m
• Total compensation is similar to the industry average
• Molina Healthcare's total shareholder return over the past three years was 2.5% while its EPS grew by 24% over the past three years

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Under the guidance of CEO Joe Zubretsky, Molina Healthcare, Inc. (NYSE:MOH) has performed reasonably well recently. As shareholders go into the upcoming AGM on 30th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

How Does Total Compensation For Joe Zubretsky Compare With Other Companies In The Industry?

Our data indicates that Molina Healthcare, Inc. has a market capitalization of US$18b, and total annual CEO compensation was reported as US$22m for the year to December 2024. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.6m.

On comparing similar companies in the American Healthcare industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$18m. So it looks like Molina Healthcare compensates Joe Zubretsky in line with the median for the industry. What's more, Joe Zubretsky holds US$128m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.6m	US$1.5m	7%
Other	US$20m	US$20m	93%
Total Compensation	US$22m	US$21m	100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. In Molina Healthcare's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Molina Healthcare, Inc.'s Growth

Molina Healthcare, Inc. has seen its earnings per share (EPS) increase by 24% a year over the past three years. Its revenue is up 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, 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 Molina Healthcare, Inc. Been A Good Investment?

With a total shareholder return of 2.5% over three years, Molina Healthcare, Inc. has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Molina Healthcare.

Switching gears from Molina Healthcare, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.