Cardinal Health, Inc.

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Cardinal Health, Inc. stock analysis CAH overview
Neutral +5

Cardinal Health reported a big increase in median worker pay

📊 Cardinal Health reported double-digit growth in median worker pay, a significant increase from the previous year.

💰 CEO Jason Hollar's total compensation dropped 26% to $19 million following changes to the company's severance plan.

📉 The company's Global Medical Products and Distribution segment ranked as the world's 12th-largest medical device business in 2025.

📉 Total revenue decreased 2% in fiscal 2025 due to expired pharmaceutical distribution contracts, while medtech sales grew 2%.

👤 CFO Aaron Alt received $6.2 million in total compensation for fiscal 2024, down 8.8% from the prior year.

💼 Segment CEO Deborah Weitzman saw an 8% increase in pay to $5.5 million after receiving substantial stock awards and bonuses.

⚖️ Legal Officer Jessica Mayer received $4.9 million in total compensation, representing a 4% increase over the previous year.

📉 Global Medical Products and Distribution Segment CEO Stephen Mason saw a significant 36% pay drop to $4.7 million for fiscal 2025.

📈 The SEC-mandated median employee compensation rose 29% to $72,657, narrowing the ratio between CEO and median worker pay.

📉 CEO pay-to-median-worker ratio decreased from 457:1 the prior year to 261:1 following the large increase in median wages.

✈️ Most of Hollar's other compensation consisted of $445,557 worth of personal use of corporate aircraft.

🗳️ Investors overwhelmingly voted in support of the company's executive pay practices during the November 2025 annual shareholder meeting.

📝 The median employee is defined as a non-exempt, full-time employee in the U.S., though no specific job title was provided.

Bullish Signals
  • Cardinal Health's Global Medical Products and Distribution segment ranked as the world's 12th-largest medical device business by revenue, highlighting its strong market position in the medtech industry.
  • The company reported double-digit growth in median worker pay for fiscal 2025, with the U.S. Securities and Exchange Commission requiring a disclosure of the CEO-to-median employee pay gap.
  • Median total compensation for all employees other than the CEO increased significantly to $72,657 from $56,119 the previous year, representing a 29% increase.
  • Cardinal Health's medtech business grew sales by 2% year over year despite a slight decrease in total revenue of 2% driven by pharmaceutical contract expirations.
  • Investors overwhelmingly voted in support of the company's executive pay practices at its annual shareholder meeting on Nov. 5, 2025, indicating confidence in governance.
  • The CEO-to-median employee pay gap decreased from 457:1 to 261:1 after implementing changes to executive compensation, narrowing inequality between leadership and staff.
  • CEO Jason Hollar's total compensation decreased by 26% to $19 million primarily due to adjustments in stock awards, which may improve long-term financial flexibility.
  • Segment CEO Deborah Weitzman saw an 8% increase in total compensation to $5.5 million, reflecting strong performance within the Pharmaceutical and Specialty Solutions segment.
  • Chief Legal and Compliance Officer Jessica Mayer received a 4% increase in total compensation to $4.9 million for fiscal 2025, signaling appreciation for her leadership.
  • Global Medical Products and Distribution Segment CEO Stephen Mason's salary remained consistent at $741,932 despite overall compensation decrease, indicating stable base pay structures.
Risk Factors
  • Total revenue decreased 2% in fiscal 2025 due to the expiration of pharmaceutical distribution contracts affecting its pharmaceutical segment.
  • Cardinal Health's Global Medical Products and Distribution segment ranked only as the world's 12th-largest medical device business in the 2025 Medtech Big 100 ranking, indicating a lower market position relative to competitors.
  • Recruiting and retaining top talent at executive and engineering levels is crucial but remains difficult as employee compensation figures are largely kept secret, limiting transparency for investors.
  • CEO Jason Hollar's total compensation dropped 26% from $25.7 million in fiscal 2024 to $19 million in fiscal 2025, reflecting significant reductions in payout despite increased overall employee pay.
  • The median employee pay disclosure does not provide a specific job title, creating uncertainty about the role's seniority and potential impact on industry compensation benchmarks.
Full Analysis
Cardinal Health reported a significant increase in median worker pay in its latest executive compensation disclosure, noting that the total compensation for its median employee rose to $72,657, representing a 29% jump from $56,119 in the prior year. This shift contributed to a notable narrowing of the pay gap between the CEO and the average workforce; while CEO Jason Hollar received $19 million in total compensation for fiscal 2025, which included a $1.5 million salary, $13.4 million in stock awards, and a $3.6 million bonus, the ratio of his pay to the median employee’s pay decreased from 457:1 the previous year to 261:1 currently. The company also disclosed that total revenue decreased by 2% in fiscal 2025, which concluded on June 30, 2025, primarily due to the expiration of pharmaceutical distribution contracts affecting its pharmaceutical segment, while its medtech business maintained a 2% year-over-year sales growth. Cardinal Health’s Global Medical Products and Distribution segment ranked as the world’s 12th-largest medical device business by revenue in the company's 2025 Medtech Big 100 ranking. Compensation figures for other top executives also showed mixed results influenced by adjustments to the company’s severance plan. CFO Aaron Alt received $6.2 million in total compensation for fiscal 2024, down 8.8% from $6.8 million the prior year, while Pharmaceutical and Specialty Solutions Segment CEO Deborah Weitzman earned $5.5 million, an 8% increase over $5.1 million previously. Chief Legal and Compliance Officer Jessica Mayer saw her compensation rise to $4.9 million from $4.7 million, though Global Medical Products and Distribution Segment CEO Stephen Mason experienced a sharp decline in pay to $4.7 million, a 36% drop from $7.3 million, due to the severance plan changes that reduced reported values for certain stock awards. The company stated that recruiting and retaining top talent is crucial in the medtech industry, but these specific compensation details are typically kept secret except when mandated by SEC disclosure rules. Additional context provided includes a breakdown of specific compensation components for the executive team. For instance, CEO Jason Hollar’s package included $500,683 in other compensation, with most being attributed to personal use of corporate aircraft valued at $445,557. CFO Aaron Alt received $57,796 in other compensation, while Deborah Weitzman and Jessica Mayer each had approximately $30,000 in other compensation categories. All total compensation figures include company-paid portions of health insurance premiums not required in executive summaries. Investor sentiment regarding these pay practices was positive, as shareholders overwhelmingly voted in support of the company’s executive pay policies at its annual meeting on November 5, 2025. Cardinal Health noted that while the median employee is a non-exempt, full-time U.S. worker, specific job titles were not disclosed to comply with reporting standards that vary across the industry.