Privia Health adjusts executive pay structure

Published 07/03/2025, 14:42
Privia Health adjusts executive pay structure

ARLINGTON, VA – Privia Health Group , Inc. (NASDAQ:PRVA), a $3.04 billion market cap company specializing in health services, has made significant changes to the compensation agreement of one of its top executives, as revealed in a recent SEC filing. According to InvestingPro data, the company maintains strong financial health with more cash than debt on its balance sheet.

On March 3, 2025, the Compensation Committee of Privia Health Group’s Board decided to amend Parth Mehrotra’s employment terms. Mehrotra, whose specific role within the company was not disclosed in the filing, is set to receive a considerable adjustment in his compensation package.

Starting March 24, 2025, Mehrotra will have an annual base salary of $650,000. Additionally, he will be eligible for an annual performance bonus that could reach up to 125% of his base salary, effective from the 2025 performance year. Furthermore, Mehrotra will also be eligible for an annual long-term incentive award, with the target value set at $8,000,000, beginning with the 2025 award. This compensation package comes as Privia Health shows strong momentum, with the stock trading near its 52-week high of $26.04 and posting an impressive 35% gain over the past six months.

The adjustments to Mehrotra’s compensation were detailed in the fifth amendment to his employment agreement, which is attached to the filing as Exhibit 10.1. This move by Privia Health Group reflects the company’s commitment to aligning the interests of its key personnel with the company’s performance and long-term objectives.

This information is based on a press release statement from the Securities and Exchange Commission. Privia Health Group, incorporated in Delaware and headquartered in Arlington, Virginia, operates under the healthcare services industry classification.

The company has not disclosed any further details regarding the rationale behind the changes in Mehrotra’s employment agreement. The adjustments to the executive’s compensation are now a part of the company’s official records, following the formal filing with the SEC. InvestingPro analysis indicates that while the company is currently trading at a high earnings multiple, analysts expect net income growth this year. For deeper insights into Privia Health’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Privia Health Group Inc has seen a series of analyst upgrades on its stock price target following positive financial results and strategic guidance. Privia Health’s fourth-quarter results for 2024 showed a 10% increase in GAAP revenues and a 7% rise in adjusted EBITDA, surpassing consensus expectations. In light of these results, TD Cowen raised its price target to $30, highlighting the company’s solid financial performance and potential for future growth. Canaccord Genuity also increased its price target to $30, noting Privia Health’s prudent business approach and consistent performance in a challenging market.

JMP Securities raised its price target to $29, citing the company’s strong outlook with Practice Collections and adjusted EBITDA projections aligning with consensus estimates. Jefferies also adjusted its price target to $29, maintaining a Buy rating due to the company’s expected EBITDA growth and minimal regulatory exposure. Meanwhile, Piper Sandler made a significant adjustment, increasing its price target to $40, based on a positive assessment of Privia Health’s strategic approach and consistent growth in the healthcare sector.

These revisions reflect confidence in Privia Health’s ability to maintain its growth trajectory and generate value for its shareholders. Analysts have noted the company’s strategic positioning and financial health as key factors in their optimistic outlooks. Privia Health’s conservative guidance and strategic reserves further support these positive assessments, indicating a cautiously optimistic future for the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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