The Compensation For Sequoia Financial Group Limited's (ASX:SEQ) CEO Looks Deserved And Here's Why

It would be hard to discount the role that CEO Garry Crole has played in delivering the impressive results at Sequoia Financial Group Limited (ASX:SEQ) recently. Coming up to the next AGM on 23 November 2022, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out the opportunities and risks within the AU Capital Markets industry.

Comparing Sequoia Financial Group Limited's CEO Compensation With The Industry

Our data indicates that Sequoia Financial Group Limited has a market capitalization of AU$77m, and total annual CEO compensation was reported as AU$511k for the year to June 2022. That's slightly lower by 4.2% over the previous year. In particular, the salary of AU$462.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$296m, the reported median total CEO compensation was AU$439k. So it looks like Sequoia Financial Group compensates Garry Crole in line with the median for the industry. Furthermore, Garry Crole directly owns AU$6.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	AU$462k	AU$378k	90%
Other	AU$49k	AU$154k	10%
Total Compensation	AU$511k	AU$533k	100%

On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. Sequoia Financial Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Sequoia Financial Group Limited's Growth Numbers

Sequoia Financial Group Limited's earnings per share (EPS) grew 167% per year over the last three years. In the last year, its revenue is up 52%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Sequoia Financial Group Limited Been A Good Investment?

Boasting a total shareholder return of 205% over three years, Sequoia Financial Group Limited has done well by shareholders. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for Sequoia Financial Group that investors should look into moving forward.

Switching gears from Sequoia Financial Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.