Does Xenia Hotels & Resorts, Inc.’s (NYSE:XHR) CEO Pay Compare Well With Peers?
Marcel Verbaas became the CEO of Xenia Hotels & Resorts, Inc. (NYSE:XHR) in 2007. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Xenia Hotels & Resorts
How Does Marcel Verbaas’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Xenia Hotels & Resorts, Inc. has a market cap of US$2.2b, and is paying total annual CEO compensation of US$5.7m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$800k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$3.6m.
It would therefore appear that Xenia Hotels & Resorts, Inc. pays Marcel Verbaas more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Xenia Hotels & Resorts has changed over time.
Is Xenia Hotels & Resorts, Inc. Growing?
On average over the last three years, Xenia Hotels & Resorts, Inc. has grown earnings per share (EPS) by 20% each year. Its revenue is up 15% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Xenia Hotels & Resorts, Inc. Been A Good Investment?
I think that the total shareholder return of 52%, over three years, would leave most Xenia Hotels & Resorts, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared the total CEO remuneration paid by Xenia Hotels & Resorts, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Xenia Hotels & Resorts (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 editorial-team@simplywallst.com.
