Bank of America just raised its EUR/USD forecast
NASHVILLE, TN - HCA Healthcare, Inc. (NYSE:HCA), one of the nation’s leading healthcare providers with a market capitalization of $79 billion and annual revenue exceeding $70 billion, has announced changes to its executive compensation plan and the upcoming retirement of a board member, in a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company currently appears undervalued, with a GREAT financial health score of 3.04 out of 4.
On Monday, the company’s Compensation Committee established the 2025 Executive Officer Performance Excellence Program (Executive Officer PEP), which outlines the performance-based pay structure for its executive officers. The plan stipulates that 80% of potential awards will be tied to the company’s EBITDA performance - which currently stands at $13.86 billion - while the remaining 20% will be linked to specific quality metrics, including healthcare-associated infections, sepsis, complications, mortality, and care experience. InvestingPro data reveals that HCA maintains strong profitability metrics, with a healthy P/E ratio of 14.34 and impressive dividend growth of 20% over the last twelve months.
Under the new Executive Officer PEP, Chief Executive Officer Samuel N. Hazen is eligible for a performance award of up to 175% of his base salary, while Executive Vice President and Chief Financial Officer Michael A. Marks, and Executive Vice President and Chief Operating Officer Jon M. Foster, could receive up to 125% of their respective base salaries.
The payout structure is designed to reward threshold, target, and maximum performance levels, with no payouts for performance falling below the minimum established thresholds. Notably, if the company’s actual EBITDA falls short of 90% of the target, no payments will be made for the quality metrics component of the plan.
The Executive Officer PEP awards will be paid exclusively in cash and are subject to adjustments by the Compensation Committee in certain circumstances, including significant events affecting the company or its financial statements. Additionally, the plan includes provisions for mandatory repayment by participants in cases of restatement or adjustment of operating results or misconduct.
In other news, board member Meg G. Crofton will retire from HCA Healthcare’s Board of Directors effective April 24, 2025. Crofton has decided not to stand for re-election at the company’s upcoming annual meeting of stockholders.
This executive compensation update and board member retirement are part of HCA Healthcare’s ongoing governance and leadership developments. The detailed terms of the Executive Officer PEP are available in the full text of the 8-K filing, which serves as the source of this information. For deeper insights into HCA Healthcare’s financial health and growth prospects, including 12 additional exclusive ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, HCA Healthcare has made significant financial moves, including issuing $5.25 billion in senior notes. This issuance includes a variety of notes with different maturities and interest rates, aimed at strengthening the company’s financial position. Additionally, HCA Healthcare has secured a new $8 billion unsecured credit agreement, replacing its previous secured credit facilities. This new agreement provides the company with increased financial flexibility and a favorable interest rate structure.
HCA Healthcare also announced plans for its subsidiary to offer more senior notes, with proceeds intended for general corporate purposes. On the analyst front, Cantor Fitzgerald maintained an Overweight rating on HCA Healthcare, with a price target of $405, citing potential upside in projected EBITDA and moderating physician fee costs. Meanwhile, Bernstein SocGen Group raised its price target for HCA Healthcare to $342 from $331, following the company’s fourth-quarter results for 2024, which aligned with consensus estimates.
Despite some operational challenges, such as a $200 million earnings impact from hurricanes, HCA Healthcare’s revenues met expectations at $18.3 billion. The company’s compensation and other operating expenses ratios were slightly better than anticipated. Analysts have noted the company’s strong historical performance and strategic focus on labor supply strategies as potential advantages in navigating current challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.