In 2016 Richard Stockton was appointed CEO of Braemar Hotels & Resorts, Inc. (NYSE:BHR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Richard Stockton's Compensation Compare With Similar Sized Companies?
Our data indicates that Braemar Hotels & Resorts, Inc. is worth US$318m, and total annual CEO compensation was reported as US$1.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.
So Richard Stockton is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Braemar Hotels & Resorts has changed over time.
Is Braemar Hotels & Resorts, Inc. Growing?
On average over the last three years, Braemar Hotels & Resorts, Inc. has shrunk earnings per share by 67% each year (measured with a line of best fit). In the last year, its revenue is up 11%.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Braemar Hotels & Resorts, Inc. Been A Good Investment?
Since shareholders would have lost about 8.3% over three years, some Braemar Hotels & Resorts, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Richard Stockton is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Braemar Hotels & Resorts.
Important note: Braemar Hotels & Resorts may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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