Key Insights

• Hyatt Hotels' Annual General Meeting to take place on 15th of May
• CEO Mark Hoplamazian's total compensation includes salary of US$1.35m
• The total compensation is 35% higher than the average for the industry
• Hyatt Hotels' total shareholder return over the past three years was 100% while its EPS grew by 111% over the past three years

Performance at Hyatt Hotels Corporation (NYSE:H) has been reasonably good and CEO Mark Hoplamazian has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 15th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

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. Notably, that's an increase of 25% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

In comparison with other companies in the American Hospitality industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$15m. Hence, we can conclude that Mark Hoplamazian is remunerated higher than the industry median. Moreover, Mark Hoplamazian also holds US$95m worth of Hyatt Hotels stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. It's interesting to note that Hyatt Hotels 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.

Hyatt Hotels Corporation's Growth

Hyatt Hotels Corporation has seen its earnings per share (EPS) increase by 111% a year over the past three years. Its revenue is up 92% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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?

Boasting a total shareholder return of 100% over three years, Hyatt Hotels Corporation has done well by shareholders. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Hyatt Hotels 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.