We Think Shareholders May Want To Consider A Review Of Kennedy-Wilson Holdings, Inc.'s (NYSE:KW) CEO Compensation Package

Key Insights

• Kennedy-Wilson Holdings will host its Annual General Meeting on 5th of June
• Total pay for CEO Bill McMorrow includes US$1.50m salary
• Total compensation is 291% above industry average
• Kennedy-Wilson Holdings' EPS declined by 99% over the past three years while total shareholder loss over the past three years was 64%

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Shareholders will probably not be too impressed with the underwhelming results at Kennedy-Wilson Holdings, Inc. (NYSE:KW) recently. At the upcoming AGM on 5th of June, shareholders can hear from the board including their plans for turning around performance. 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Kennedy-Wilson Holdings

How Does Total Compensation For Bill McMorrow Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kennedy-Wilson Holdings, Inc. has a market capitalization of US$881m, and reported total annual CEO compensation of US$16m for the year to December 2024. That's a notable increase of 14% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.

For comparison, other companies in the American Real Estate industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$4.1m. Accordingly, our analysis reveals that Kennedy-Wilson Holdings, Inc. pays Bill McMorrow north of the industry median. Furthermore, Bill McMorrow directly owns US$72m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 29% of total compensation out of all the companies we analyzed, while other remuneration made up 71% of the pie. It's interesting to note that Kennedy-Wilson Holdings allocates a smaller portion of compensation to salary in comparison 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.

Kennedy-Wilson Holdings, Inc.'s Growth

Over the last three years, Kennedy-Wilson Holdings, Inc. has shrunk its earnings per share by 99% per year. It saw its revenue drop 3.2% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Kennedy-Wilson Holdings, Inc. Been A Good Investment?

Few Kennedy-Wilson Holdings, Inc. shareholders would feel satisfied with the return of -64% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Kennedy-Wilson Holdings that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.