How Much Does Booking Holdings' (NASDAQ:BKNG) CEO Make?
Glenn Fogel has been the CEO of Booking Holdings Inc. (NASDAQ:BKNG) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Booking Holdings.
Check out our latest analysis for Booking Holdings
Comparing Booking Holdings Inc.'s CEO Compensation With the industry
Our data indicates that Booking Holdings Inc. has a market capitalization of US$66b, and total annual CEO compensation was reported as US$15m for the year to December 2019. That's a notable decrease of 28% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$750k.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$6.7m. Hence, we can conclude that Glenn Fogel is remunerated higher than the industry median. Furthermore, Glenn Fogel directly owns US$57m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$750k | US$750k | 5% |
Other | US$14m | US$20m | 95% |
Total Compensation | US$15m | US$20m | 100% |
On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. In Booking Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Booking Holdings Inc.'s Growth Numbers
Over the past three years, Booking Holdings Inc. has seen its earnings per share (EPS) grow by 8.6% per year. It saw its revenue drop 23% over the last year.
We would prefer it if there was revenue growth, but the modest EPSgrowth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Booking Holdings Inc. Been A Good Investment?
With a three year total loss of 16% for the shareholders, Booking Holdings Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As we touched on above, Booking Holdings Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing for Booking Holdings, and although EPS growth is steady, it hasn't set the world on fire. This doesn't look great when you consider Glenn is taking home compensation north of the industry average. All things considered, we believe shareholders would be disappointed to see Glenn's compensation grow without first seeing an improvement in the performance of the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Booking Holdings that investors should look into moving forward.
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.
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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