Marriott Vacations expands board, adds Impactive co-founder

ORLANDO - Marriott Vacations Worldwide Corporation (NYSE: VAC), a global vacation company with a market capitalization of $2.3 billion and a FAIR financial health rating according to InvestingPro, has announced the addition of Christian Alejandro Asmar, co-founder and Managing Partner of Impactive Capital, to its Board of Directors, effective today. This move brings the total number of board members to 12, with 11 serving as independent directors.

The appointment is part of a broader strategy to enhance the company’s governance and operational efficiency. In line with this, Marriott Vacations Worldwide will establish two new ad hoc board committees. One committee will concentrate on the company’s modernization, including revenue growth and cost efficiencies, with Mr. Asmar playing a key role. The other will focus on advising the board on technology innovation strategies.

Impactive Capital, which owns approximately 9.5% of Marriott Vacations Worldwide’s outstanding shares, has been a significant shareholder for over a year. The investment comes as the company maintains strong fundamentals with a healthy current ratio of 3.61 and a dividend yield of 4.81%, having maintained dividend payments for 12 consecutive years. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation. William J. Shaw, Chairman of the Board, expressed his appreciation for Impactive’s engagement and welcomed Mr. Asmar’s expertise and shareholder perspective to the board.

Mr. Asmar has a notable background in investment management and has held positions at Blue Harbour Group and Morgan Stanley Infrastructure Partners. His experience spans infrastructure investments and serving on the board of various entities, including Avid Technology, Inc. [Nasdaq: AVID], where he served from November 2019 to November 2023.

The company’s relationship with Impactive Capital is further solidified by a support agreement that includes customary standstill provisions. This partnership is expected to support Marriott Vacations Worldwide’s efforts to drive operational efficiency, enhance cash flow per share, and deliver sustainable long-term returns for shareholders.

Marriott Vacations Worldwide Corporation is known for its vacation ownership, exchange, rental, and resort and property management services. It operates over 120 vacation ownership resorts and manages a network of more than 3,200 affiliated resorts worldwide. The company generated $3.3 billion in revenue over the last twelve months, with a gross profit margin of 55.8%. For deeper insights into VAC’s financial health, valuation, and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which provides detailed analysis of this and 1,400+ other US stocks.

The information for this article is based on a press release statement from Marriott Vacations Worldwide Corporation.

In other recent news, Marriott Vacations Worldwide reported its first-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $1.66, surpassing the forecasted $1.59. Despite this, the company experienced a slight revenue shortfall, reporting $1.2 billion against the anticipated $1.22 billion. Analysts from Goldman Sachs raised their price target for Marriott Vacations from $48 to $55, maintaining a Sell rating, while Jefferies increased their target from $60 to $74, keeping a Hold rating. Both firms noted the company’s modernization efforts and cost-saving strategies, with Goldman Sachs highlighting an increase in the 2025 EBITDA forecast from $708 million to $750 million.

Additionally, Marriott Vacations announced a quarterly dividend of $0.79 per share, indicating its commitment to shareholder value. The company also held its annual stockholder meeting, where eight director nominees were elected, and Ernst & Young LLP was ratified as the independent auditor. The meeting results were filed with the SEC, reflecting strong shareholder support for executive compensation and annual voting on such matters.

The company’s modernization initiatives, aimed at improving operational efficiencies and reducing costs, are projected to yield significant benefits by 2026. Despite a 4% decline in contract sales during March and April, Marriott Vacations remains focused on enhancing its tour flow and value proposition to drive future sales. These developments underscore the company’s strategic priorities and ongoing efforts to strengthen its financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.