Mark Frissora has been the CEO of Caesars Entertainment Corporation (NASDAQ:CZR) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mark Frissora’s Compensation Compare With Similar Sized Companies?
Our data indicates that Caesars Entertainment Corporation is worth US$5.5b, and total annual CEO compensation is US$24m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$2.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.6m.
As you can see, Mark Frissora is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Caesars Entertainment Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Caesars Entertainment has changed over time.
Is Caesars Entertainment Corporation Growing?
Caesars Entertainment Corporation has reduced its earnings per share by an average of 20% a year, over the last three years. In the last year, its revenue is up 103%.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Caesars Entertainment Corporation Been A Good Investment?
Caesars Entertainment Corporation has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by Caesars Entertainment Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Caesars Entertainment (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.