Pay Dirt: A Look at Mgmt. Comp Across Our Coverage

研报英文原文证据摘录

Pay Dirt: A Look at Mgmt. Comp Across Our Coverage

Health Care | Healthcare Technology & Distribution

June 16, 2026

Elizabeth Anderson Ayush Vyas Amir Farahani, CFA Joanna Zhou

212-446-5632 646-551-8512 646-551-8518 212-446-5659

elizabeth.anderson@evercoreisi.com Ayush.Vyas@evercoreISI.com Amir.Farahani@evercoreisi.com joanna.zhou@evercoreisi.com

With proxies and executive pay in the headlines, we are updating our annual note on executive pay across

our coverage universe. This report focuses on management compensation design, short-term and long-

term drivers, executive pay mix, and their compensation target/performance history.

Here are some of the highlights of our key findings:

▪ CVS and IQV remain the only companies in coverage that provide explicit forward PSU targets.

o CVS's 2023-2025 PSU cycle paid out at 0% after 2025 Adj. EPS missed the threshold, while

newly established 2025-2027 targets have been reset below Street expectations.

o IQV also lowered its long-standing PSU growth hurdle from 10% to 7% annual EPS growth,

bringing management targets close to consensus forecasts.

▪ 2025 was one of the toughest pay-for-performance years in our coverage universe. Managed care

names facing elevated utilization pressure produced some of the weakest incentive outcomes,

including 0% PSU payouts at UNH, MOH, and NVST, while COR, CAH, DGX, and CVS generated

above-target incentive payouts.

▪ Providers and labs generally outperformed long-term incentive targets, while managed care and

dental companies lagged. Higher utilization trends benefited providers such as HCA, THC, UHS,

and LH, whereas dental companies continued to face volume pressure and missed multi-year

performance targets.

▪ Long-term incentives remain heavily weighted toward EPS and profitability metrics.