Stock Analysis

Shareholders May Be Wary Of Increasing Wynn Resorts, Limited's (NASDAQ:WYNN) CEO Compensation Package

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Wynn Resorts, Limited (NASDAQ:WYNN) has not performed well recently and CEO Matt Maddox will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 05 May 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Wynn Resorts

How Does Total Compensation For Matt Maddox Compare With Other Companies In The Industry?

Our data indicates that Wynn Resorts, Limited has a market capitalization of US$15b, and total annual CEO compensation was reported as US$25m for the year to December 2020. We note that's an increase of 77% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$2.0m.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$13m. Hence, we can conclude that Matt Maddox is remunerated higher than the industry median. Furthermore, Matt Maddox directly owns US$59m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary US$2.0m US$2.0m 8%
Other US$23m US$12m 92%
Total CompensationUS$25m US$14m100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. Wynn Resorts sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

NasdaqGS:WYNN CEO Compensation April 29th 2021

A Look at Wynn Resorts, Limited's Growth Numbers

Wynn Resorts, Limited has reduced its earnings per share by 104% a year over the last three years. Its revenue is down 68% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Wynn Resorts, Limited Been A Good Investment?

Given the total shareholder loss of 28% over three years, many shareholders in Wynn Resorts, Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Wynn Resorts (1 doesn't sit too well with us!) that you should be aware of before investing here.

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