We Take A Look At Whether Howard Hughes Holdings Inc.'s (NYSE:HHH) CEO May Be Underpaid
Key Insights
- Howard Hughes Holdings will host its Annual General Meeting on 30th of September
- Total pay for CEO David O'Reilly includes US$1.00m salary
- Total compensation is 62% below industry average
- Over the past three years, Howard Hughes Holdings' EPS grew by 17% and over the past three years, the total shareholder return was 56%
The impressive results at Howard Hughes Holdings Inc. (NYSE:HHH) recently will be great news for shareholders. At the upcoming AGM on 30th of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
View our latest analysis for Howard Hughes Holdings
Comparing Howard Hughes Holdings Inc.'s CEO Compensation With The Industry
Our data indicates that Howard Hughes Holdings Inc. has a market capitalization of US$4.8b, and total annual CEO compensation was reported as US$5.7m for the year to December 2024. That's a notable increase of 15% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.
For comparison, other companies in the American Real Estate industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$15m. That is to say, David O'Reilly is paid under the industry median. Moreover, David O'Reilly also holds US$12m worth of Howard Hughes Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.0m | US$750k | 17% |
| Other | US$4.7m | US$4.2m | 83% |
| Total Compensation | US$5.7m | US$5.0m | 100% |
On an industry level, around 31% of total compensation represents salary and 69% is other remuneration. Howard Hughes Holdings 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 Howard Hughes Holdings Inc.'s Growth Numbers
Howard Hughes Holdings Inc. has seen its earnings per share (EPS) increase by 17% a year over the past three years. Its revenue is up 80% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Howard Hughes Holdings Inc. Been A Good Investment?
Boasting a total shareholder return of 56% over three years, Howard Hughes Holdings Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Howard Hughes Holdings (1 shouldn't be ignored!) that you should be aware of before investing here.
Important note: Howard Hughes Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.