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Is Vail Resorts, Inc.'s (NYSE:MTN) CEO Overpaid Relative To Its Peers?

Simply Wall St

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Rob Katz became the CEO of Vail Resorts, Inc. (NYSE:MTN) in 2006. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Vail Resorts

How Does Rob Katz's Compensation Compare With Similar Sized Companies?

Our data indicates that Vail Resorts, Inc. is worth US$9.2b, and total annual CEO compensation is US$3.4m. (This figure is for the year to July 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$929k. 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$6.8m.

A first glance this seems like a real positive for shareholders, since Rob Katz is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Vail Resorts has changed over time.

NYSE:MTN CEO Compensation, May 7th 2019

Is Vail Resorts, Inc. Growing?

Vail Resorts, Inc. has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). It achieved revenue growth of 8.5% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Vail Resorts, Inc. Been A Good Investment?

Boasting a total shareholder return of 84% over three years, Vail Resorts, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

It looks like Vail Resorts, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Rob Katz deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Vail Resorts insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.