Yahoo Finance How Much is InterContinental Hotels Group PLC's (LON:IHG) CEO Getting Paid?
Keith Barr became the CEO of InterContinental Hotels Group PLC (LON:IHG) in 2017. First, this article will compare CEO compensation with compensation at 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for InterContinental Hotels Group
How Does Keith Barr's Compensation Compare With Similar Sized Companies?
Our data indicates that InterContinental Hotels Group PLC is worth UK£9.3b, and total annual CEO compensation was reported as US$3.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$792k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a group of companies with market caps over UK£6.2b, we found that their median CEO total compensation was UK£3.5m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
That means Keith Barr receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at InterContinental Hotels Group has changed from year to year.
Is InterContinental Hotels Group PLC Growing?
Over the last three years InterContinental Hotels Group PLC has shrunk its earnings per share by an average of 22% per year (measured with a line of best fit). It achieved revenue growth of 9.0% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has InterContinental Hotels Group PLC Been A Good Investment?
I think that the total shareholder return of 46%, over three years, would leave most InterContinental Hotels Group PLC shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Keith Barr is paid around what is normal the leaders of larger companies.
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for large companies. Whatever your view on compensation, you might want to check if insiders are buying or selling InterContinental Hotels Group shares (free trial).
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.
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