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Andrew R. Moor became the CEO of Equitable Group Inc. (TSE:EQB) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Andrew R. Moor's Compensation Compare With Similar Sized Companies?
According to our data, Equitable Group Inc. has a market capitalization of CA$1.1b, and pays its CEO total annual compensation worth CA$2.8m. (This is based on the year to December 2018). Notably, that's an increase of 12% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$700k. We examined companies with market caps from CA$531m to CA$2.1b, and discovered that the median CEO total compensation of that group was CA$2.1m.
Thus we can conclude that Andrew R. Moor receives more in total compensation than the median of a group of companies in the same market, and of similar size to Equitable Group Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Equitable Group, below.
Is Equitable Group Inc. Growing?
Over the last three years Equitable Group Inc. has grown its earnings per share (EPS) by an average of 7.6% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.
Has Equitable Group Inc. Been A Good Investment?
With a total shareholder return of 21% over three years, Equitable Group Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by Equitable Group Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Whatever your view on compensation, you might want to check if insiders are buying or selling Equitable Group shares (free trial).
If you want to buy a stock that is better than Equitable Group, this free list of high return, low debt companies is a great place to look.
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 email@example.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.