Yahoo Finance Is Sequoia Financial Group Limited’s (ASX:SEQ) CEO Pay Fair?
Scott Beeton has been the CEO of Sequoia Financial Group Limited (ASX:SEQ) since 2014. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Sequoia Financial Group
How Does Scott Beeton’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sequoia Financial Group Limited has a market cap of AU$37m, and is paying total annual CEO compensation of AU$336k. That’s a notable increase of 14% on last year. We examined a group of similar sized companies, with market capitalizations of below AU$283m. The median CEO compensation in that group is AU$357k.
That means Scott Beeton receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Sequoia Financial Group, below.
Is Sequoia Financial Group Limited Growing?
On average over the last three years, Sequoia Financial Group Limited has grown earnings per share (EPS) by 156% each year. It achieved revenue growth of 116% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Sequoia Financial Group Limited Been A Good Investment?
I think that the total shareholder return of 57%, over three years, would leave most Sequoia Financial Group Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Scott Beeton is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Sequoia Financial Group Limited shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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.
