Governance in a Changing World
January 28, 2021
The restaurant industry has been hit especially hard by COVID. Layoffs, closures, a shift to delivery and outdoor dining, as well as mergers and acquisitions have dominated the news this past year. Many executives and even board directors have taken pay cuts during this health crisis. We also have seen restaurant boards in the news over the last several months. For example, in March 2021, Mellody Hobson will become the first African American Chairwoman of the Board of a Fortune 500 company – Starbuck – which is long overdue.
Corporate Governance Study: Gaming Boards
November 20, 2020
Casino Journal and AETHOS Consulting Group have been analysing board practices in the gaming industry for over a decade. The results of our recent survey show some vast improvements; however, there are still several companies that continue to lag the marketplace when it comes to corporate governance structure. Our study examined five critical areas of corporate governance:
Restaurant CEO Pay and Performance
December 8, 2020
2020 has been an incredibly tumultuous year within the restaurant industry. Due to the pandemic, the industry has seen closures, bankruptcies, acquisitions, and a complete shift in the way guests interact with restaurants. This year will be a watershed moment for every CEO and very well could determine the future of their businesses and careers.
Corporate Governance Study: Lodging Boards
December 8, 2020
The top performing board in this year’s study belonged to Six Flags Entertainment, scoring an impressive 44 out of a possible 46 points. Extended Stay America and Hilton Grand Vacations tied for second with 43 points, while InterContinental Hotels and Pebblebrook Hotel Trust finished in a tie with 42 points. An impressive performance by these organizations. Each has proxy filing that was thoughtful, thorough, and easy to understand. Just what investors and proxy advisors are looking for. Other organizations such as Travel Zoo, Southerly Hotels, and InnSuites Hospitality Trust have much more work to do but should find plenty of low hanging fruit to improve their overall governance.
CFO Compensation in the Gaming Industry
August 8, 2019
Extreme competitiveness in today’s business world demands that hotel companies consistently outthink and outpace companies within and outside their immediate hospitality verticals. Such competitors include cruise lines, home-sharing, and other luxury or niche experiences like “glamping,” all of which constantly strive to dominate market share. Identifying and securing superstars for senior leadership roles is the cornerstone for ongoing company performance in branding and profit share. Here, companies must be forward-thinking by looking at the “best-in-class” talent from other segments and specifically those within the wider hospitality industry. This is not a new idea, but with the competitor set constantly evolving and broadening, hotel companies need to raise the bar on a continuous basis. This best practice makes sense and can be extremely effective when implemented thoughtfully according to a well-defined strategic purpose.
The Broken Record Discussion – Boardroom Diversity Within The Restaurant Industry
January 23, 2019
Participating in countless client board meetings, I can say with confidence that gender diversity within the boardroom leads to first-rate ideation and collaboration. In addition, credible studies conducted by the likes of Boston Consulting Group and McKinsey & Company prove out a strong correlation between a board comprised of a larger female presence and superior results in the boardroom. While top governance experts have been promoting greater gender diversity for more than a decade, not much has changed within the restaurant industry. These glum statistics say it all.
Hotel Industry CEO Compensation Study 2017 - How Well Do CEOs Earn Their Paychecks?
May 16, 2017
According to a 2017 report from the Economic Policy Institute on CEO pay, chief executives at the largest 350 public companies in the United States made US$15.6 million on average in 2016 — 271 times what the typical worker earns. In the hotel industry the average total compensation for a public CEO was US$5.7 million or about 100 times more than the typical worker. Should hotel CEOs be criticized or praised? We think it’s a combination of both, but you might be surprised who gets criticized and who gets praised.
Gaming's top boardrooms of 2017
February 2, 2018
The gaming industry is one of the most regulated businesses in the world. With a colourful past, the industry has gone to great lengths to earn a reputation as “squeaky clean.” But has that translated to the boardroom and corporate governance in general? We think so. Casino Journal and AETHOS Consulting Group have been analysing board practices for more than a decade; rating gaming companies on how well they are organized, managed, communicate with shareholders and pay themselves and executives.
Casino Top Boardrooms
February 21, 2017
AETHOS Consulting Group has been expounding on corporate governing practices for more than a decade. Our goal has been consistent; rate gaming companies on how well they are organized, managed and communicate with shareholders. This year’s study included 27 companies that have significant business concerns in the gaming industry.
Governance in a Changing Political Landscape
February 21, 2017
2016 was a watershed year in corporate governance, with major initiatives in say-on-pay, share ownership requirements, director evaluation and transparency. The hospitality industry continues to make significant strides in each one of these areas. This year’s study was different in that it included a number of international companies, and it was interesting to see how companies traded on the NYSE and NASDAQ compared to those on other exchanges. Suffice to say, good corporate governance is a global initiative and not necessarily led by US regulators.
Boosting Board Governance with Todd Diener
July 21, 2016
Public Boards are increasingly under siege by shareholder activists, putting unprecedented pressure on Board members to perform in all manner of ways to boost enterprise value. But what does it mean to perform as a Board member?
Corporate Governance Takes a Front Seat
January 12, 2016
Casino Journal and AETHOS Consulting Group have be examining corporate governing practices for more than a decade. This year’s study includes 26 companies that have significant business concerns in the gaming industry. This study examines board makeup, independence, committee structure and pay-for-performance in determining a governance score for each company.
Corporate Board Gender Diversity - U.S. Chain Restaurant Industry
October 29, 2015
Most restaurant chains receive failing grades when it comes to corporate board gender diversity - according to a recent study by Harvard Business Review, females are one of the most powerful economic forces in the world. In the U.S., women make up more than 50% of the population and account for over 80% of consumer spend. If this is the case, why do so few females occupy seats in the corporate boardroom?
Board Performance in Hospitality
September 16, 2015
New trends in the board room are emerging based on AETHOS Consulting Group’s study of corporate governance in the lodging industry. This does not mean that perfection has been achieved in previously raised key areas. Unfortunately, we continue to see a few companies with classified boards, little diversity, questionable independence, and holding back as it relates to more performance based compensation.
Hotel CEO Pay-For-Performance 2015
August 7, 2015
Using our proprietary pay-for-performance model, AETHOS has evaluated the performance of forty-six CEOs in the hospitality/travel/entertainment industries. The overarching goal? To determine whether a CEO is deserving of his or her pay relative to their peers.
Pay For Top Industry Chief Executives Is On The Rise
July 28, 2015
Pay for top gaming industry chief executives is on the uptick, especially for companies concentrating on international opportunities
A Profile of Hospitality Leadership in Africa
September 15, 2014
Dr. Jim Houran assesses global leadership profiles and specifically hones-in on the potential challenges faced by employers and senior executives on the African continent. Dr. Jim shares best practices in driving performance in the work place and identifies key issues that need addressing - the psychometric GM and CEO/COO profiles revealed in the article provide a data-driven response to the critical question posed as to what types of leaders will meet the guests defining the new haven of hospitality. Arguably that answer is leaders who are “technical capable but perhaps not fully prepared in their service mindset.”
Hotel CEO Pay-For-Performance
September 3, 2014
Every proxy season for the past 20 years I have evaluated the performance of CEOs in the hotel industry using a proprietary pay-for-performance model which looks at key financial metrics such as company size, stock appreciation, EBITDA growth, and total direct compensation within a defined peer group.
CEO Turnover Study 2013: A Profile of Hotel Industry Leadership - A 10 Year Review
August 18, 2014
CEO turnover among the world’s 50 largest hotel firms in 2013 was 10% down from a 2012 figure of 16%. Leaders who took office in 2013 were Sébastien Bazin (Accor), Lee Chee Koon (Ascott), Wolfgang Neumann (Carlson Rezidor), Frank Fiskers (Scandic), and Peter Gowers (Travelodge). New CEO arrivals always tend to prompt speculation from employees, shareholders, analysts, media, and industry colleagues as to the likely performance of the hire and of the hiring organization. Such transition events also give us a chance to take stock, look at the CEO role in the hotel world from a holistic standpoint and explore the profile of these industry titans.
Balance of Power: Moving Towards Greater Director Independence
April 10, 2014
In our 15th annual study of US board performance, Host Hotels & Resorts and Starwood Hotels & Resorts tie for first place. Host rose from its 7th place ranking and Starwood from 4th in last year’s study, edging past Sunstone Hotel Investors, last year’s winner.
Governance in Gaming
March 27, 2014
The 2013 ranking of gaming’s best boards emphasized diversity, clearing the way for MGM Resorts to capture the top spot.
Revisiting the Link Between Governance & Performance
February 8, 2013
By comparing a company’s stock appreciation, growth in earnings and EBITDA to our Governance Index, Keith Kefgen concludes only a minor connection between the two.
Role of the Nominating/Governance Committee
January 16, 2013
The role of the nominating/governance committee is critical in establishing good governance.
Ladies and Gentlemen: Our Chairman and CEO
January 14, 2013
Aethos Consulting Group recommends a separation of the roles of CEO and Chairman on a hotel company board.
Whitbread Tops 2012 European Hotel Board Study
January 11, 2013
Congratulations to Whitbread on regaining its 2009 position as the top performing hotel board of directors in Europe. Our latest European Board Study sheds insight on latest goings-on in hotel company boardrooms.
When Leadership Matters – A Review of Hotel Board Performance
January 11, 2013
LaSalle Hotel Properties wins top spot in the 13th US hotel company board performance study.
Top Hotel Industry Performers in a Turbulent Time
January 11, 2013
CEO compensation in the hotel industry continues to be an important issue in the midst of an economic downturn. Based on our pay-for-performance model, Jon E. Bortz of LaSalle Hotel Properties was underpaid by 111.9% or $2.1 million in 2007.
The 2007 Hotel Industry Board Survey
January 11, 2013
In this annual survey of board performance we analyzed the public documents of forty-one US public lodging companies.
The 2006 Hotel Industry Board Survey
January 11, 2013
The 8th annual survey of board performance analyzed public documents of forty-four public US lodging companies.
Public Display of (Board) Affection: US Hotel Boards Prioritize Self-Evaluation and Communication
January 11, 2013
Sunstone Hotel Investors leaps to the top in the 14th annual Top-Performing Board analysis of US public hotel companies.
Hotel Industry Boards Improving Under Shareholder Pressure
January 11, 2013
Starwood Hotels & Resorts wins top spot in the 12th annual US hotel company board performance study.
Has the Fun Run Out for the Gaming Bosses?
January 11, 2013
Our annual review of the US gaming industry leadership evaluates the stock performance, EBITDA growth and market capitalization of public gaming companies in the U.S. and compares it with CEO pay.
From Ideals to Best Practices in Gaming Company Boardrooms: Corporate Governance in the U.S. Gaming Industry
January 11, 2013
The 12th annual study evaluates the Best Gaming Boards of 2009. Conclusions are based on analysis of 35 public gaming companies.
Directing Balance: US Gaming Industry's Best Boards in 2005
January 11, 2013
US gaming industry's boards in 2005 exercised diversity and discretion in their handling of corporate governance, finds our annual survey of best practices in the boardrooms of US public gaming companies.
Board Sports - How Can European Hotel Companies Improve Their Score?
January 11, 2013
Rezidor receives top honours in the annual review of corporate governance practices at European hotel companies.