Key Insights

• Vector Group to hold its Annual General Meeting on 20th of August
• Total pay for CEO Howard Lorber includes US$2.02m salary
• Total compensation is 1,106% above industry average
• Vector Group's EPS grew by 0.3% over the past three years while total shareholder return over the past three years was 61%

CEO Howard Lorber has done a decent job of delivering relatively good performance at Vector Group Ltd. (NYSE:VGR) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of August. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Howard Lorber Compare With Other Companies In The Industry?

Our data indicates that Vector Group Ltd. has a market capitalization of US$2.1b, and total annual CEO compensation was reported as US$18m for the year to December 2023. We note that's an increase of 64% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$2.0m.

On examining similar-sized companies in the the US Tobacco industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$1.5m. This suggests that Howard Lorber is paid more than the median for the industry. What's more, Howard Lorber holds US$90m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 33% of total compensation represents salary, while the remainder of 67% is other remuneration. It's interesting to note that Vector Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Vector Group Ltd.'s Growth Numbers

Earnings per share at Vector Group Ltd. are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is up 2.4%.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vector Group Ltd. Been A Good Investment?

Boasting a total shareholder return of 61% over three years, Vector Group Ltd. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Vector Group you should be aware of, and 2 of them are concerning.

Switching gears from Vector Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.