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Globally, we are all experiencing something we’ve never been through and it’s extremely uncomfortable.
In fact, for Marriott International Inc., the world’s largest hotel company, it’s been catastrophic as it has started to furlough what it expects will be tens of thousands of employees as it ramps up hotel closings across the globe.
You may remember the video message last month in which Arne Sorenson, the CEO of Marriott, said “In most markets, our business is already running 75 percent below normal levels” and “There is simply nothing worse than telling highly valued associates, people who are the very heart of this company, that their roles are being impacted by events completely outside of their control.”
In the message, Mr. Sorenson additionally said he was forgoing his salary ($1.3 million) for the rest of the year.
Interestingly, yesterday, the New York Times published an informative piece about Marriott executive pay while many are waiting for $1200 to hit their bank accounts.
Here’s an excerpt from the full New York Times piece:
Take, for example, Marriott International, the world’s largest hotel chain, which last year earned $1.2 billion. It has begun furloughing most of its American workers, jeopardizing their access to health care, even as the company paid out more than $160 million in quarterly dividends and pursued a raise for its chief executive, Arne M. Sorenson.
Over the last two years, while Marriott was recording profits of more than $3.1 billion, it spent more than $5 billion to buy shares of its stock.
Mr. Sorenson said he was forgoing his salary — $1.3 million annually — for the rest of the year, though he said nothing about his stock-based compensation, which exceeded $8 million last year, or the cash incentive plan that brought him $3.5 million, according to a company statement.
Twelve days later, the company paid its scheduled dividend to shareholders. On April 8, Marriott filed with the Securities and Exchange Commission proposals that its board would present for approval at a meeting of shareholders next month. Among them: a 7.7 percent salary increase for the chief executive, plus a cash bonus of up to 200 percent.
I received quite a bit of slack when I published an article titled “why i don’t feel sorry” for mega-businesses.
But is this business as usual for them? Are you fighting for companies that have your best interest at hand?
Society is told to keep money on-hand for a rainy day. Meanwhile, big business is buying their own stock to increase the price and put even more money in stockholder pockets and are asking for a bailout when the rainy day comes. Is that fair? It’s an interesting article to read.
If you’re interested in reading more about Marriott’s executive compensation, you can access Marriott’s SEC filing HERE.
What do you think about this?