Should You Worry About Viad Corp’s (NYSE:VVI) CEO Pay Check?
In 2014 Steve Moster was appointed CEO of Viad Corp (NYSE:VVI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Viad
How Does Steve Moster’s Compensation Compare With Similar Sized Companies?
Our data indicates that Viad Corp is worth US$1.1b, and total annual CEO compensation is US$3m. Notably, that’s an increase of 19% over the year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$1m.
As you can see, Steve Moster is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Viad Corp is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Viad has changed over time.
Is Viad Corp Growing?
Over the last three years Viad Corp has grown its earnings per share (EPS) by an average of 22% per year. In the last year, its revenue is down -5.4%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Viad Corp Been A Good Investment?
Boasting a total shareholder return of 69% over three years, Viad Corp has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We examined the amount Viad Corp pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Viad Corp insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
