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Does Raymond James Financial, Inc.'s (NYSE:RJF) CEO Pay Reflect Performance?

Simply Wall St

Paul Reilly became the CEO of Raymond James Financial, Inc. (NYSE:RJF) in 2010. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Raymond James Financial

How Does Paul Reilly's Compensation Compare With Similar Sized Companies?

Our data indicates that Raymond James Financial, Inc. is worth US$12b, and total annual CEO compensation was reported as US$11m for the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$500k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

That means Paul Reilly receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Raymond James Financial has changed over time.

NYSE:RJF CEO Compensation, November 7th 2019

Is Raymond James Financial, Inc. Growing?

On average over the last three years, Raymond James Financial, Inc. has grown earnings per share (EPS) by 25% each year (using a line of best fit). In the last year, its revenue is up 6.7%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

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

Boasting a total shareholder return of 41% over three years, Raymond James Financial, 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.

In Summary...

Remuneration for Paul Reilly is close enough to the median pay for a CEO of a large company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Raymond James Financial insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.