How Much is Host Hotels & Resorts, Inc.'s (NYSE:HST) CEO Getting Paid?
Jim Risoleo became the CEO of Host Hotels & Resorts, Inc. (NYSE:HST) in 2017. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Host Hotels & Resorts
How Does Jim Risoleo's Compensation Compare With Similar Sized Companies?
According to our data, Host Hotels & Resorts, Inc. has a market capitalization of US$13b, and paid its CEO total annual compensation worth US$8.0m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$900k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means Jim Risoleo receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Host Hotels & Resorts has changed over time.
Is Host Hotels & Resorts, Inc. Growing?
Over the last three years Host Hotels & Resorts, Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Host Hotels & Resorts, Inc. Been A Good Investment?
With a total shareholder return of 12% over three years, Host Hotels & Resorts, Inc. 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...
Jim Risoleo is paid around the same as most CEOs of large companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. So you may want to check if insiders are buying Host Hotels & Resorts shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
