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Is Las Vegas Sands Corp.'s (NYSE:LVS) CEO Being Overpaid?

Simply Wall St

In 2004 Sheldon Adelson was appointed CEO of Las Vegas Sands Corp. (NYSE:LVS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Las Vegas Sands

How Does Sheldon Adelson's Compensation Compare With Similar Sized Companies?

Our data indicates that Las Vegas Sands Corp. is worth US$43b, and total annual CEO compensation is US$24m. (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$5.0m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

As you can see, Sheldon Adelson is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Las Vegas Sands Corp. 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 Las Vegas Sands has changed over time.

NYSE:LVS CEO Compensation, September 9th 2019

Is Las Vegas Sands Corp. Growing?

Over the last three years Las Vegas Sands Corp. has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). It achieved revenue growth of 2.9% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has Las Vegas Sands Corp. Been A Good Investment?

With a total shareholder return of 16% over three years, Las Vegas Sands Corp. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared the total CEO remuneration paid by Las Vegas Sands Corp., and compared it to remuneration at a group of other large companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Las Vegas Sands.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.