Yahoo Finance Hilton Grand Vacations Inc.'s (NYSE:HGV) CEO Will Probably Find It Hard To See A Huge Raise This Year
Key Insights
Hilton Grand Vacations' Annual General Meeting to take place on 8th of May
CEO Mark Wang's total compensation includes salary of US$1.10m
The total compensation is similar to the average for the industry
Hilton Grand Vacations' three-year loss to shareholders was 6.0% while its EPS grew by 84% over the past three years
In the past three years, the share price of Hilton Grand Vacations Inc. (NYSE:HGV) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 8th of May. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Hilton Grand Vacations
How Does Total Compensation For Mark Wang Compare With Other Companies In The Industry?
At the time of writing, our data shows that Hilton Grand Vacations Inc. has a market capitalization of US$4.4b, and reported total annual CEO compensation of US$9.8m for the year to December 2023. That's slightly lower by 7.7% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.
On examining similar-sized companies in the American Hospitality industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$11m. This suggests that Hilton Grand Vacations remunerates its CEO largely in line with the industry average. Moreover, Mark Wang also holds US$26m worth of Hilton Grand Vacations stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.1m | US$1.1m | 11% |
Other | US$8.7m | US$9.5m | 89% |
Total Compensation | US$9.8m | US$11m | 100% |
Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. Hilton Grand Vacations sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Hilton Grand Vacations Inc.'s Growth
Over the past three years, Hilton Grand Vacations Inc. has seen its earnings per share (EPS) grow by 84% per year. In the last year, its revenue is up 1.5%.
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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Hilton Grand Vacations Inc. Been A Good Investment?
With a three year total loss of 6.0% for the shareholders, Hilton Grand Vacations Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Hilton Grand Vacations (1 is significant!) that you should be aware of before investing here.
Switching gears from Hilton Grand Vacations, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
