Most Shareholders Will Probably Find That The CEO Compensation For Virtu Financial, Inc. (NASDAQ:VIRT) Is Reasonable

Key Insights

• Virtu Financial to hold its Annual General Meeting on 2nd of June
• Total pay for CEO Doug Cifu includes US$1.20m salary
• Total compensation is similar to the industry average
• Over the past three years, Virtu Financial's EPS grew by 5.6% and over the past three years, the total shareholder return was 75%

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Performance at Virtu Financial, Inc. (NASDAQ:VIRT) has been reasonably good and CEO Doug Cifu has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 2nd of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Virtu Financial

Comparing Virtu Financial, Inc.'s CEO Compensation With The Industry

Our data indicates that Virtu Financial, Inc. has a market capitalization of US$6.3b, and total annual CEO compensation was reported as US$9.9m for the year to December 2024. That's a notable increase of 20% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

In comparison with other companies in the American Capital Markets industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$9.9m. From this we gather that Doug Cifu is paid around the median for CEOs in the industry. Furthermore, Doug Cifu directly owns US$32m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. Virtu Financial is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

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

Over the past three years, Virtu Financial, Inc. has seen its earnings per share (EPS) grow by 5.6% per year. It achieved revenue growth of 43% over the last year.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 Virtu Financial, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Virtu Financial, Inc. for providing a total return of 75% 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

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 1 warning sign for Virtu Financial that investors should think about before committing capital to this stock.

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.