Key Insights

• CoreCivic will host its Annual General Meeting on 16th of May
• Salary of US$1.06m is part of CEO Damon Hininger's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, CoreCivic's EPS grew by 74% and over the past three years, the total shareholder return was 99%

The performance at CoreCivic, Inc. (NYSE:CXW) has been quite strong recently and CEO Damon Hininger has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 16th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

How Does Total Compensation For Damon Hininger Compare With Other Companies In The Industry?

At the time of writing, our data shows that CoreCivic, Inc. has a market capitalization of US$1.7b, and reported total annual CEO compensation of US$5.8m for the year to December 2023. That's a notable increase of 12% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.

For comparison, other companies in the American Commercial Services industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$4.6m. This suggests that CoreCivic remunerates its CEO largely in line with the industry average. Furthermore, Damon Hininger directly owns US$9.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. CoreCivic sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at CoreCivic, Inc.'s Growth Numbers

CoreCivic, Inc.'s earnings per share (EPS) grew 74% per year over the last three years. In the last year, its revenue is up 4.8%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has CoreCivic, Inc. Been A Good Investment?

Boasting a total shareholder return of 99% over three years, CoreCivic, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which shouldn't be ignored) in CoreCivic we think you should know about.

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.