Key Things To Understand About Marriott Vacations Worldwide's (NYSE:VAC) CEO Pay Cheque
Steve Weisz has been the CEO of Marriott Vacations Worldwide Corporation (NYSE:VAC) since 2011, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Marriott Vacations Worldwide.
Check out our latest analysis for Marriott Vacations Worldwide
Comparing Marriott Vacations Worldwide Corporation's CEO Compensation With the industry
According to our data, Marriott Vacations Worldwide Corporation has a market capitalization of US$5.3b, and paid its CEO total annual compensation worth US$8.7m over the year to December 2019. We note that's an increase of 13% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$955k.
In comparison with other companies in the industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$8.7m. So it looks like Marriott Vacations Worldwide compensates Steve Weisz in line with the median for the industry. What's more, Steve Weisz holds US$30m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$955k | US$925k | 11% |
Other | US$7.7m | US$6.7m | 89% |
Total Compensation | US$8.7m | US$7.6m | 100% |
On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. In Marriott Vacations Worldwide's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Marriott Vacations Worldwide Corporation's Growth
Over the last three years, Marriott Vacations Worldwide Corporation has shrunk its earnings per share by 92% per year. It saw its revenue drop 26% over the last year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Marriott Vacations Worldwide Corporation Been A Good Investment?
With a three year total loss of 1.0% for the shareholders, Marriott Vacations Worldwide Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Steve is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is a bit concerning) in Marriott Vacations Worldwide we think you should know about.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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