- Oops!Something went wrong.Please try again later.
The results at Wynn Resorts, Limited (NASDAQ:WYNN) have been quite disappointing recently and CEO Matt Maddox bears some responsibility for this. At the upcoming AGM on 05 May 2021, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
How Does Total Compensation For Matt Maddox Compare With Other Companies In The Industry?
According to our data, Wynn Resorts, Limited has a market capitalization of US$15b, and paid its CEO total annual compensation worth US$25m over the year to December 2020. We note that's an increase of 77% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$2.0m.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$13m. Accordingly, our analysis reveals that Wynn Resorts, Limited pays Matt Maddox north of the industry median. Moreover, Matt Maddox also holds US$59m worth of Wynn Resorts stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. In Wynn Resorts' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Wynn Resorts, Limited's Growth Numbers
Over the last three years, Wynn Resorts, Limited has shrunk its earnings per share by 104% per year. In the last year, its revenue is down 68%.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Wynn Resorts, Limited Been A Good Investment?
Given the total shareholder loss of 28% over three years, many shareholders in Wynn Resorts, Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for Wynn Resorts (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.