Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Arne Sorenson has been the CEO of Marriott International, Inc. (NASDAQ:MAR) since 2012. This analysis aims first to contrast CEO compensation with other large companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Arne Sorenson’s Compensation Compare With Similar Sized Companies?
According to our data, Marriott International, Inc. has a market capitalization of US$44b, and pays its CEO total annual compensation worth US$13m. (This figure is for the year to December 2018). That’s less than last year. While we always look at total compensation first, we note that the salary component is less, at US$1.3m. 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. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Arne Sorenson receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Marriott International, below.
Is Marriott International, Inc. Growing?
On average over the last three years, Marriott International, Inc. has grown earnings per share (EPS) by 21% each year (using a line of best fit). It achieved revenue growth of 3.6% 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Marriott International, Inc. Been A Good Investment?
Boasting a total shareholder return of 110% over three years, Marriott International, Inc. 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.
Arne Sorenson is paid around what is normal the leaders of larger companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Marriott International insiders are buying or selling shares.
If you want to buy a stock that is better than Marriott International, this free list of high return, low debt companies is a great place to look.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.