Increases to CEO Compensation Might Be Put On Hold For Now at Raymond James Financial, Inc. (NYSE:RJF)

Key Insights

• Raymond James Financial will host its Annual General Meeting on 22nd of February
• Salary of US$750.0k is part of CEO Paul Reilly's total remuneration
• Total compensation is 122% above industry average
• Over the past three years, Raymond James Financial's EPS grew by 25% and over the past three years, the total shareholder return was 60%

CEO Paul Reilly has done a decent job of delivering relatively good performance at Raymond James Financial, Inc. (NYSE:RJF) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of February. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Raymond James Financial

How Does Total Compensation For Paul Reilly Compare With Other Companies In The Industry?

According to our data, Raymond James Financial, Inc. has a market capitalization of US$24b, and paid its CEO total annual compensation worth US$35m over the year to September 2023. That's a notable increase of 98% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$750k.

For comparison, other companies in the American Capital Markets industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$16m. Hence, we can conclude that Paul Reilly is remunerated higher than the industry median. Moreover, Paul Reilly also holds US$30m worth of Raymond James Financial stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$750k	US$688k	2%
Other	US$34m	US$17m	98%
Total Compensation	US$35m	US$18m	100%

On an industry level, around 9% of total compensation represents salary and 91% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Raymond James Financial paid Paul Reilly a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Raymond James Financial, Inc.'s Growth Numbers

Raymond James Financial, Inc. has seen its earnings per share (EPS) increase by 25% a year over the past three years. Its revenue is up 8.4% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Raymond James Financial, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Raymond James Financial, Inc. for providing a total return of 60% 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...

Raymond James Financial prefers rewarding its CEO through non-salary benefits. 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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Raymond James Financial that investors should look into moving forward.

Important note: Raymond James 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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