It's Unlikely That Hyatt Hotels Corporation's (NYSE:H) CEO Will See A Huge Pay Rise This Year

Key Insights

• Hyatt Hotels to hold its Annual General Meeting on 15th of May
• CEO Mark Hoplamazian's total compensation includes salary of US$1.35m
• Total compensation is 35% above industry average
• Hyatt Hotels' EPS grew by 113% over the past three years while total shareholder return over the past three years was 97%

Under the guidance of CEO Mark Hoplamazian, Hyatt Hotels Corporation (NYSE:H) 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 15th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Hyatt Hotels

Comparing Hyatt Hotels Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Hyatt Hotels Corporation has a market capitalization of US$15b, and reported total annual CEO compensation of US$21m for the year to December 2023. We note that's an increase of 25% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.

For comparison, other companies in the American Hospitality industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$15m. This suggests that Mark Hoplamazian is paid more than the median for the industry. What's more, Mark Hoplamazian holds US$92m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.4m	US$1.3m	7%
Other	US$19m	US$15m	93%
Total Compensation	US$21m	US$17m	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. Hyatt Hotels pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Hyatt Hotels Corporation's Growth Numbers

Over the past three years, Hyatt Hotels Corporation has seen its earnings per share (EPS) grow by 113% per year. Its revenue is up 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Hyatt Hotels Corporation Been A Good Investment?

We think that the total shareholder return of 97%, over three years, would leave most Hyatt Hotels Corporation shareholders smiling. 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 4 warning signs for Hyatt Hotels that investors should look into moving forward.

Switching gears from Hyatt Hotels, 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.