Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6516
    -0.0019 (-0.30%)
     
  • OIL

    83.06
    +1.71 (+2.10%)
     
  • GOLD

    2,243.30
    +30.60 (+1.38%)
     
  • Bitcoin AUD

    108,552.98
    +2,804.84 (+2.65%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6039
    +0.0008 (+0.14%)
     
  • AUD/NZD

    1.0908
    +0.0028 (+0.26%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     

Is Fiducian Group Limited’s (ASX:FID) CEO Paid At A Competitive Rate?

Indy Singh has been the CEO of Fiducian Group Limited (ASX:FID) since 1996. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Fiducian Group

How Does Indy Singh’s Compensation Compare With Similar Sized Companies?

According to our data, Fiducian Group Limited has a market capitalization of AU$127m, and pays its CEO total annual compensation worth AU$640k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at AU$525k. We looked at a group of companies with market capitalizations under AU$279m, and the median CEO compensation was AU$364k.

ADVERTISEMENT

Thus we can conclude that Indy Singh receives more in total compensation than the median of a group of companies in the same market, and of similar size to Fiducian Group Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Fiducian Group has changed over time.

ASX:FID CEO Compensation January 27th 19
ASX:FID CEO Compensation January 27th 19

Is Fiducian Group Limited Growing?

Fiducian Group Limited has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). Its revenue is up 13% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Fiducian Group Limited Been A Good Investment?

Most shareholders would probably be pleased with Fiducian Group Limited for providing a total return of 101% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

We examined the amount Fiducian Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Fiducian Group shares with their own money (free access).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.