CEO compensation increases may be suspended for the time being at Vector Group Ltd. (NYSE: VGR)
CEO Howard Lorber has done a decent job of delivering relatively good performance to Vector Group Ltd. (NYSE: VGR) recently. As shareholders enter the next AGM on June 3, 2021, CEO compensation is unlikely to be their focus, but rather the steps management takes to continue the growth momentum. However, some shareholders may still be reluctant to be too generous with CEO compensation.
Check out our latest analysis for Vector Group
How does Howard Lorber’s total compensation compare to other companies in the industry?
According to our data, Vector Group Ltd. has a market capitalization of $ 2.2 billion and paid its CEO a total annual compensation of $ 16 million for the year through December 2020. This is notably a 35% increase over to the previous year. We think total compensation is more important, but our data shows the CEO salary is lower, at US $ 3.4 million.
Looking at similar-sized companies in the industry, with market capitalizations between US $ 1.0 billion and US $ 3.2 billion, we found that the median total compensation for CEOs in this group was 3. 2 million US dollars. Therefore, we can conclude that Howard Lorber is paid above the industry median. Additionally, Howard Lorber owns $ 72 million in company stock in his own name, indicating that they have a lot of skin in the game.
|Salary||3.4 million USD||3.3 million USD||21%|
|Other||12 million USD||8.4 million USD||79%|
|Total compensation||16 million USD||12 million USD||100%|
At the industry level, approximately 28% of total compensation is salary and 72% is other compensation. In the case of Vector Group, non-salary compensation represents a larger share of total compensation, compared to the broader industry. If non-salary compensation dominates total compensation, it is an indicator that the executive’s salary is linked to the performance of the company.
A look at the growth figures of Vector Group Ltd.
Over the past three years, Vector Group Ltd. saw its earnings per share (EPS) increase by 11% per year. Its turnover is up 11% compared to last year.
Overall, this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth over the past year, which suggests the business is healthy and growing. Historical performance can sometimes be a good indicator of what’s to come, but if you want to look into the future of the business, this might be of interest to you. free viewing analyst forecasts.
Does Vector Group Ltd. was a good investment?
Vector Group Ltd. did not do too badly by shareholders, with a total return of 10.0%, over three years. It would be nice to see this metric improve in the future. As a result, the company’s investors may be reluctant to agree to increase CEO compensation in the future, before seeing their returns improve.
Seeing that the company has performed decently, only a few shareholders, if any, might have questions about CEO compensation at the next AGM. However, any decision to increase CEO compensation could face some objections from shareholders given that the CEO is already paid higher than the industry average.
It is always advisable to analyze the CEO’s compensation, as well as to carry out an in-depth analysis of the main areas of performance of the company. We did our research and identified 4 warning signs (and 2 that are of concern) in Vector Group, we think you should know.
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