How Is Freedom Holding's (NASDAQ:FRHC) CEO Paid Relative To Peers?

This article will reflect on the compensation paid to Timur Turlov who has served as CEO of Freedom Holding Corp. (NASDAQ:FRHC) since 2015. This analysis will also assess whether Freedom Holding pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Freedom Holding

Comparing Freedom Holding Corp.'s CEO Compensation With the industry

Our data indicates that Freedom Holding Corp. has a market capitalization of US$3.0b, and total annual CEO compensation was reported as US$134k for the year to March 2020. Notably, that's an increase of 9.3% over the year before. In particular, the salary of US$95.2k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$5.4m. Accordingly, Freedom Holding pays its CEO under the industry median. What's more, Timur Turlov holds US$2.2b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Freedom Holding 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 Freedom Holding Corp.'s Growth Numbers

Over the last three years, Freedom Holding Corp. has shrunk its earnings per share by 31% per year. In the last year, its revenue is up 68%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Freedom Holding Corp. Been A Good Investment?

We think that the total shareholder return of 644%, over three years, would leave most Freedom Holding Corp. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we touched on above, Freedom Holding Corp. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. And as we saw, revenue growth and shareholder returns have been rising However, EPS growth has been negative during this time. However, considering all aspects of performance, we've concluded Timur earns an appropriate compensation.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Freedom Holding that you should be aware of before investing.

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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