Hotel CEO Pay

The AETHOS Pay-for-Performance Model looks at key financial metrics such as company size, stock appreciation, EBITDA growth, and total direct compensation within a defined peer group. The peer group for this study included thirty-six hospitality CEOs. The market capitalization of the group ranged from a massive $147B (Disney) to a micro $7M (Supertel). One might ask how I can compare Bob Iger to Kelly Walters. In fact, that is precisely what the model is intended to do. Interestingly, the analysis illustrates that Mr. Iger was worth more than his $34M paycheck, while Walters struggled to earn his $290K salary.

As expected, the highest paid CEOs in the industry were dominated by the large cap companies. Bob Iger topped the list with his previously stated pay package of $34M, while Boyd and Holmes made near $15M last year. Other double digit millionaires were Frits van Paasschen at Starwood, Jon Bortz at Pebblebrook and Arne Sorenson at Marriott.

Although these pay packages were significant, all of these CEOs had an AETHOS Value Index (AVI) near 100, signifying that they earned their large paychecks. The average CEO paycheck for the group went down nearly $500K from $5.7M in 2012 to $5.2M in 2013, representing an 8.7% decrease. The decrease was primarily in the bonus and other compensation components.

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