It's Unlikely That Axos Financial, Inc.'s (NYSE:AX) CEO Will See A Huge Pay Rise This Year

Key Insights

• Axos Financial's Annual General Meeting to take place on 14th of November
• CEO Greg Garrabrants' total compensation includes salary of US$700.0k
• The total compensation is 294% higher than the average for the industry
• Axos Financial's total shareholder return over the past three years was 33% while its EPS grew by 31% over the past three years

Performance at Axos Financial, Inc. (NYSE:AX) has been reasonably good and CEO Greg Garrabrants has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of November. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Axos Financial

How Does Total Compensation For Greg Garrabrants Compare With Other Companies In The Industry?

At the time of writing, our data shows that Axos Financial, Inc. has a market capitalization of US$4.7b, and reported total annual CEO compensation of US$14m for the year to June 2024. Notably, that's an increase of 31% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$700k.

For comparison, other companies in the American Banks industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$3.5m. Hence, we can conclude that Greg Garrabrants is remunerated higher than the industry median. Moreover, Greg Garrabrants also holds US$130m worth of Axos Financial stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$700k	US$700k	5%
Other	US$13m	US$9.9m	95%
Total Compensation	US$14m	US$11m	100%

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that Axos Financial allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Axos Financial, Inc.'s Growth Numbers

Axos Financial, Inc. has seen its earnings per share (EPS) increase by 31% a year over the past three years. Its revenue is up 23% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Axos Financial, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Axos Financial, Inc. for providing a total return of 33% 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Axos Financial (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Axos Financial is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.