The Marcus Corporation's (NYSE:MCS) CEO Might Not Expect Shareholders To Be So Generous This Year

The Marcus Corporation (NYSE:MCS) has not performed well recently and CEO Greg Marcus will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 06 May 2021. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Marcus

How Does Total Compensation For Greg Marcus Compare With Other Companies In The Industry?

At the time of writing, our data shows that The Marcus Corporation has a market capitalization of US$630m, and reported total annual CEO compensation of US$4.6m for the year to December 2020. Notably, that's a decrease of 14% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$466k.

On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$4.6m. So it looks like Marcus compensates Greg Marcus in line with the median for the industry. Furthermore, Greg Marcus directly owns US$8.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$466k	US$834k	10%
Other	US$4.1m	US$4.5m	90%
Total Compensation	US$4.6m	US$5.3m	100%

Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. Marcus sets aside a smaller share of compensation for salary, in comparison to the overall 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 The Marcus Corporation's Growth Numbers

The Marcus Corporation has reduced its earnings per share by 93% a year over the last three years. In the last year, its revenue is down 72%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has The Marcus Corporation Been A Good Investment?

The return of -32% over three years would not have pleased The Marcus Corporation shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Marcus (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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.

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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. 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.
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