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It Looks Like Marcus & Millichap, Inc.'s (NYSE:MMI) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
- Marcus & Millichap to hold its Annual General Meeting on 1st of May
- CEO Hessam Nadji's total compensation includes salary of US$700.0k
- The overall pay is comparable to the industry average
- Marcus & Millichap's three-year loss to shareholders was 30% while its EPS was down 106% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at Marcus & Millichap, Inc. (NYSE:MMI) recently. At the upcoming AGM on 1st of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for Marcus & Millichap
How Does Total Compensation For Hessam Nadji Compare With Other Companies In The Industry?
Our data indicates that Marcus & Millichap, Inc. has a market capitalization of US$1.2b, and total annual CEO compensation was reported as US$4.6m for the year to December 2024. We note that's a decrease of 56% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$700k.
On comparing similar companies from the American Real Estate industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$4.6m. This suggests that Marcus & Millichap remunerates its CEO largely in line with the industry average. Moreover, Hessam Nadji also holds US$8.1m worth of Marcus & Millichap stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$700k | US$700k | 15% |
| Other | US$3.9m | US$9.7m | 85% |
| Total Compensation | US$4.6m | US$10m | 100% |
On an industry level, around 33% of total compensation represents salary and 67% is other remuneration. Marcus & Millichap pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Marcus & Millichap, Inc.'s Growth Numbers
Over the last three years, Marcus & Millichap, Inc. has shrunk its earnings per share by 106% per year. In the last year, its revenue is up 7.8%.
Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Marcus & Millichap, Inc. Been A Good Investment?
With a total shareholder return of -30% over three years, Marcus & Millichap, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Marcus & Millichap (free visualization of insider trades).
Important note: Marcus & Millichap is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.