We Think Some Shareholders May Hesitate To Increase Booking Holdings Inc.'s (NASDAQ:BKNG) CEO Compensation

Key Insights

• Booking Holdings to hold its Annual General Meeting on 4th of June
• Salary of US$750.0k is part of CEO Glenn Fogel's total remuneration
• The total compensation is 175% higher than the average for the industry
• Over the past three years, Booking Holdings' EPS grew by 102% and over the past three years, the total shareholder return was 63%

Under the guidance of CEO Glenn Fogel, Booking Holdings Inc. (NASDAQ:BKNG) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 4th of June. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Booking Holdings

How Does Total Compensation For Glenn Fogel Compare With Other Companies In The Industry?

Our data indicates that Booking Holdings Inc. has a market capitalization of US$129b, and total annual CEO compensation was reported as US$47m for the year to December 2023. Notably, that's an increase of 52% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$750k.

On comparing similar companies in the American Hospitality industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$17m. Hence, we can conclude that Glenn Fogel is remunerated higher than the industry median. Moreover, Glenn Fogel also holds US$99m worth of Booking Holdings 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$750k	US$750k	2%
Other	US$46m	US$30m	98%
Total Compensation	US$47m	US$31m	100%

Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Booking Holdings paid Glenn Fogel a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Booking Holdings Inc.'s Growth

Over the past three years, Booking Holdings Inc. has seen its earnings per share (EPS) grow by 102% per year. It achieved revenue growth of 21% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Booking Holdings Inc. Been A Good Investment?

Most shareholders would probably be pleased with Booking Holdings Inc. for providing a total return of 63% over three years. 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.

To Conclude...

Booking Holdings prefers rewarding its CEO through non-salary benefits. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Booking Holdings that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.