We Think Shareholders Will Probably Be Generous With StoneX Group Inc.'s (NASDAQ:SNEX) CEO Compensation

Key Insights

• StoneX Group's Annual General Meeting to take place on 1st of March
• Total pay for CEO Sean O'Connor includes US$600.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, StoneX Group's EPS grew by 38% and over the past three years, the total shareholder return was 119%

We have been pretty impressed with the performance at StoneX Group Inc. (NASDAQ:SNEX) recently and CEO Sean O'Connor deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 1st of March. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for StoneX Group

Comparing StoneX Group Inc.'s CEO Compensation With The Industry

According to our data, StoneX Group Inc. has a market capitalization of US$2.1b, and paid its CEO total annual compensation worth US$6.0m over the year to September 2022. We note that's an increase of 25% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$600k.

On examining similar-sized companies in the American Capital Markets industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$7.3m. This suggests that StoneX Group remunerates its CEO largely in line with the industry average. Moreover, Sean O'Connor also holds US$120m worth of StoneX Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	US$600k	US$600k	10%
Other	US$5.4m	US$4.1m	90%
Total Compensation	US$6.0m	US$4.7m	100%

On an industry level, roughly 10% of total compensation represents salary and 90% is other remuneration. Our data reveals that StoneX Group allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

StoneX Group Inc.'s Growth

Over the past three years, StoneX Group Inc. has seen its earnings per share (EPS) grow by 38% per year. Its revenue is up 35% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has StoneX Group Inc. Been A Good Investment?

Boasting a total shareholder return of 119% over three years, StoneX Group Inc. has done well by shareholders. 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...

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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for StoneX Group you should be aware of, and 1 of them shouldn't be ignored.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.