How Much Does Security National Financial's (NASDAQ:SNFC.A) CEO Make?

Scott Quist has been the CEO of Security National Financial Corporation (NASDAQ:SNFC.A) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Security National Financial

How Does Total Compensation For Scott Quist Compare With Other Companies In The Industry?

At the time of writing, our data shows that Security National Financial Corporation has a market capitalization of US$154m, and reported total annual CEO compensation of US$708k for the year to December 2019. That's a fairly small increase of 7.1% over the previous year. Notably, the salary which is US$528.5k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$796k. From this we gather that Scott Quist is paid around the median for CEOs in the industry. Furthermore, Scott Quist directly owns US$14m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. Security National Financial pays out 75% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Security National Financial Corporation's Growth

Security National Financial Corporation has seen its earnings per share (EPS) increase by 105% a year over the past three years. Its revenue is up 58% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Security National Financial Corporation Been A Good Investment?

Boasting a total shareholder return of 91% over three years, Security National Financial Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As previously discussed, Scott is compensated close to the median for companies of its size, and which belong to the same industry. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Scott is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Security National Financial you should be aware of, and 1 of them doesn't sit too well with us.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. 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.
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