Yahoo Finance Does Marriott International, Inc.'s (NASDAQ:MAR) CEO Pay Compare Well With Peers?
Arne Sorenson became the CEO of Marriott International, Inc. (NASDAQ:MAR) in 2012. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Marriott International
How Does Arne Sorenson's Compensation Compare With Similar Sized Companies?
Our data indicates that Marriott International, Inc. is worth US$50b, and total annual CEO compensation was reported as US$13m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.3m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their 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.
So Arne Sorenson receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Marriott International has changed from year to year.
Is Marriott International, Inc. Growing?
Over the last three years Marriott International, Inc. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). It achieved revenue growth of 1.8% 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Marriott International, Inc. Been A Good Investment?
Boasting a total shareholder return of 93% over three years, Marriott International, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Arne Sorenson is paid around what is normal the leaders of larger companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Marriott International.
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.
