Anthony Saravanos
HCI GroupAbout Anthony Saravanos
Anthony Saravanos, age 54, is Divisional President — Real Estate (Greenleaf Capital, LLC) and a director of HCI Group since 2007, with a background spanning commercial real estate, finance, and marketing; he holds a BA in Economics and Spanish from Ursinus College and an MBA (marketing) from Villanova University and is a licensed broker and Certified Commercial Investment Member . Company performance under the broader leadership team in 2024 included record net income of $127.6 million, 36% revenue growth, and a 26% increase in book value per share; over the decade ROE averaged 13.9% and TSR over the last five years reached 189% versus peers, framing the pay-for-performance environment that informs NEO bonuses (including Saravanos) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Boardwalk Company (commercial real estate) | Vice President | 2005–2013 | Led brokerage/development; positioned HCI’s real estate division for later expansion |
| DaimlerChrysler Motors Corporation | District Manager, Marketing & Sales | 1997–2001 | Analytical financial acumen and operating discipline carried into HCI oversight |
| Various commercial property entities | Managing Partner | 2001–present | Built portfolio across FL/NY; informs HCI’s significant real estate investment activity |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| BayFirst Financial Corp (NASDAQ: BAFN) | Chairman of the Board | 2015–present | Public company board leadership in financial services (SBA lending) |
| First Home Bank | Director | 2011–present | Banking oversight experience; enhances capital allocation judgment |
| Greek Children’s Fund of Florida | Vice President | 2013–2020 | Community leadership |
| Johns Hopkins Hospital All Children’s Foundation | Trustee | 2018–2020 | Non-profit governance |
Fixed Compensation
| Metric ($USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $300,000 | $300,000 | $350,000 |
| Cash Bonus | — | $75,000 | $125,000 |
| Stock Awards | — | — | — |
| Option Awards | — | — | — |
| All Other Compensation | $105,400 | $59,900 | $56,600 |
| Total | $405,400 | $434,900 | $531,600 |
| All Other Compensation Detail | 2022 | 2023 | 2024 |
|---|---|---|---|
| Cash dividends on unvested restricted stock | $105,400 | $59,900 | $56,600 |
Performance Compensation
| Award/Metric | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|
| Annual cash bonus (NEOs) | Discretionary | Company profitability and strategic execution | 2024 pre-tax income $173.4M; positive quarterly earnings; bonus awarded $125,000 (Saravanos) | N/A (paid 2024) |
| Restricted stock (2021 grant) — time-based 3,000 shares | N/A | 750 shares/yr | 1,625 shares vested in 2024; 437 surrendered for taxes (net 1,188) | 750 shares vest each 2/25 in 2022–2025 |
| Restricted stock (2021 grant) — market-based 34,000 shares | N/A | HCI stock ≥ $140 for 30 consecutive trading days | Unvested at 12/31/2024; fair value used for reporting $82.80/share | Vests 1 year after threshold achieved |
| Performance measures guiding NEO CAP | N/A | TSR, ROE, EBIT, Gross Premiums Earned | HCI TSR value $289; ROE decade avg 13.9%; gross earned premiums $1,083.2M in 2024 | N/A |
- The Compensation Committee emphasizes pay-for-performance and uses discretion across financial and qualitative factors; specific weighting for Saravanos’s bonus metrics is not disclosed .
- Company-wide governance includes a clawback policy for incentive compensation tied to restated results and an anti-hedging policy prohibiting derivatives/short positions in HCI securities .
Equity Ownership & Alignment
| Beneficial Ownership (as of 4/14/2025) | Shares | % of Outstanding |
|---|---|---|
| Total beneficial ownership (Saravanos) | 139,957 | 1.30% |
| Ownership Breakdown | Shares |
|---|---|
| HC Investment LLC (controlled) | 30,000 |
| Custodian for minor (Anthony & Maria Saravanos) | 1,200 |
| IRA | 140 |
| Restricted shares (unvested) | 34,000 |
| 2021 time-based restricted shares outstanding at 12/31/2024 | 750; market value $87,398 using $116.53 close |
| 2021 market-based restricted shares (threshold $140) | 34,000; payout value used for reporting $2,815,200 |
- Options: None disclosed for Saravanos (no exercisable/unexercisable options in the outstanding awards table) .
- Vesting/cashflow pressure: In 2024, 1,625 shares vested for Saravanos; 437 shares were surrendered to cover taxes, indicating periodic sell/surrender activity around vesting events .
- Anti-hedging: Company prohibits hedging and short positions by directors/executives; no pledging policy disclosure identified .
- Director share ownership guideline: New directors expected to own at least $200,000 of HCI shares within five years and hold until retirement (employee directors do not receive director fees, but guideline applies to directors generally) .
Employment Terms
| Provision | Saravanos | Notes |
|---|---|---|
| Employment agreement | Not disclosed | Proxy enumerates agreements for CEO and CFO only |
| Severance multiple (salary+bonus) | Not disclosed | CEO and CFO terms detailed; Saravanos not specified |
| Change-in-control (CIC) vesting | Eligible via 2012 Omnibus Plan terms | Restricted shares vest immediately upon CIC unless assumed/replaced; also immediate vesting if employment terminated within 12 months post-CIC |
| Non-compete / non-solicit | Not disclosed | CEO has 2-year non-compete; CFO has 12-month non-compete; Saravanos not specified |
| Clawback | In place (committee charter) | Clawback of incentive comp for restated results |
| Deferred compensation / pension | No nonqualified plan; 401(k) safe harbor only | Company match up to 4% and standard vesting; no SERP |
Board Governance
- Service history: Director since May 2007; Divisional President — Real Estate since 2013 .
- Committee roles: Chairs Sustainability Committee; not a member of Audit, Compensation, or Governance & Nominating .
- Independence: Not independent (executive officer) .
- Board activity: 13 Board meetings in 2024; nine of ten directors attended 100% and one attended 92% (individual attendance not disclosed by director) .
- Board leadership: CEO also serves as Chairman; governance mitigants include a Lead Independent Director (Gregory Politis) with defined charter and majority independent board .
Dual-role implications: As a non-independent executive/director chairing Sustainability, Saravanos’s governance influence is balanced by independent committee structures (Audit, Compensation, Governance), a Lead Independent Director, and majority independent board composition .
Director Compensation
- Employee directors receive no additional director compensation; 2024 director cash retainer and stock awards applied to non-employee directors only .
Performance & Track Record
- HCI 2024 highlights include $127.6M net income, 42% growth in gross earned premiums to $1,083.2M, and customer retention ~90%, underscoring operating execution and underwriting discipline; these company outcomes support the NEO bonus framework that included Saravanos .
- Real estate expertise has been “increasingly important” as HCI makes significant real estate investments; Saravanos’s leadership of Greenleaf aligns with this strategic vector .
Risk Indicators & Red Flags
- Hedging prohibition reduces misalignment risk; no pledging disclosure identified (monitor pledging in future filings) .
- Related party transactions disclosed involve Oxbridge Re (director Madhu); no related party dealings disclosed for Saravanos .
- Section 16 filings: late Form 4s noted for CEO and COO; none cited for Saravanos in 2024 .
Compensation Structure Analysis
- Cash vs. equity mix: Saravanos’s 2024 compensation was predominantly cash (salary + bonus; no new equity awards), with substantial legacy unvested restricted stock from the 2021 multi-year program (34,000 market-based + time-based tranches), supporting retention/alignment without incremental 2024 dilution .
- Metrics/payout discretion: Committee employed holistic performance assessment (profitability, strategic goals, hurricane response); explicit metric weighting for Saravanos’s bonus not disclosed .
- Equity design: Market-based hurdles (>$140 stock for 30 days) reflect “stretch” alignment; immediate CIC vesting creates potential acceleration risk but reinforces retention until strategic events .
Equity Ownership & Vesting Schedule Details
| Restricted Stock Tranches | Grant Date | Vesting Condition | Vesting Dates/Amounts | Status at 12/31/2024 |
|---|---|---|---|---|
| Time-based 3,000 shares | 2/26/2021 | Service only | 750 shares each 2/25/2022–2025 | 750 unvested; $87,398 market value at $116.53 close |
| Market-based 34,000 shares | 2/26/2021 | HCI share price ≥ $140 for 30 consecutive trading days; 1-year hold | Vests one year after threshold met | Unvested; reporting fair value $82.80/share ($2,815,200 total) |
Investment Implications
- Alignment/retention: Significant unvested equity (34,000 performance-based plus remaining time-based) ties Saravanos’s long-term incentives to share price appreciation, reducing near-term departure risk and aligning with owners; expect periodic tax-driven surrenders upon vesting, as evidenced in 2024 .
- Bonus discretion tied to profitability/strategic execution: Modest 2024 bonus ($125k) relative to CEO suggests committee differentiates payout by scope and impact; continued profitability and premium growth support bonus continuity but absence of explicit weights raises opacity risk for traders assessing beat/miss of comp triggers .
- Governance balance: Dual-role (executive + director) is counterweighted by lead independent oversight and independent committees; investors should monitor Sustainability Committee influence on capital allocation related to real estate and ESG .
- Event risk: CIC provisions could accelerate vesting, potentially increasing short-term selling pressure; however, anti-hedging policies reinforce long-term alignment .