Mark Hoplamazian has been the CEO of Hyatt Hotels Corporation (NYSE:H) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mark Hoplamazian's Compensation Compare With Similar Sized Companies?
According to our data, Hyatt Hotels Corporation has a market capitalization of US$7.9b, and pays its CEO total annual compensation worth US$12m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
Thus we can conclude that Mark Hoplamazian receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hyatt Hotels Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Hyatt Hotels, below.
Is Hyatt Hotels Corporation Growing?
On average over the last three years, Hyatt Hotels Corporation has grown earnings per share (EPS) by 49% each year (using a line of best fit). It saw its revenue drop -1.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Hyatt Hotels Corporation Been A Good Investment?
Boasting a total shareholder return of 46% over three years, Hyatt Hotels Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Hyatt Hotels Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Hyatt Hotels shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.