In 2014 Steve Moster was appointed CEO of Viad Corp (NYSE:VVI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
How Does Steve Moster’s Compensation Compare With Similar Sized Companies?
According to our data, Viad Corp has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$3.7m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$900k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.
That means Steve Moster receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Viad, below.
Is Viad Corp Growing?
Over the last three years Viad Corp has shrunk its earnings per share by an average of 6.6% per year (measured with a line of best fit). In the last year, its revenue is up 6.8%.
Sadly for shareholders, earnings per share are actually down, over 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.
Has Viad Corp Been A Good Investment?
Boasting a total shareholder return of 99% over three years, Viad Corp 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.
Steve Moster is paid around what is normal the leaders of comparable size companies.
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the 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 similar sized companies. Shareholders may want to check for free if Viad insiders are buying or selling shares.
If you want to buy a stock that is better than Viad, this free list of high return, low debt companies is a great place to look.
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