Key Insights

• Vail Resorts to hold its Annual General Meeting on 5th of December
• Total pay for CEO Kirsten Lynch includes US$1.09m salary
• The overall pay is 43% below the industry average
• Vail Resorts' EPS grew by 25% over the past three years while total shareholder loss over the past three years was 38%

Shareholders may be wondering what CEO Kirsten Lynch plans to do to improve the less than great performance at Vail Resorts, Inc. (NYSE:MTN) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 5th of December. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

Comparing Vail Resorts, Inc.'s CEO Compensation With The Industry

According to our data, Vail Resorts, Inc. has a market capitalization of US$6.8b, and paid its CEO total annual compensation worth US$6.3m over the year to July 2024. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

On comparing similar companies from the American Hospitality industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$11m. This suggests that Kirsten Lynch is paid below the industry median. What's more, Kirsten Lynch holds US$6.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. Although there is a difference in how total compensation is set, Vail Resorts more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Vail Resorts, Inc.'s Growth Numbers

Vail Resorts, Inc.'s earnings per share (EPS) grew 25% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vail Resorts, Inc. Been A Good Investment?

With a total shareholder return of -38% over three years, Vail Resorts, Inc. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The loss to shareholders over the past three years is certainly concerning. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Vail Resorts that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.