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Is INTL FCStone Inc.'s (NASDAQ:INTL) CEO Being Overpaid?

Simply Wall St

In 2002 Sean O'Connor was appointed CEO of INTL FCStone Inc. (NASDAQ:INTL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for INTL FCStone

How Does Sean O'Connor's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that INTL FCStone Inc. has a market cap of US$746m, and is paying total annual CEO compensation of US$2.7m. (This figure is for the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at US$500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.

So Sean O'Connor is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at INTL FCStone, below.

NasdaqGS:INTL CEO Compensation, August 5th 2019

Is INTL FCStone Inc. Growing?

INTL FCStone Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It saw its revenue drop -17% over the last year.

I generally like to see a little revenue growth, but I'm happy with the modest EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has INTL FCStone Inc. Been A Good Investment?

INTL FCStone Inc. has generated a total shareholder return of 24% over three years, so most shareholders would 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.

In Summary...

Remuneration for Sean O'Connor is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling INTL FCStone (free visualization of insider trades).

Important note: INTL FCStone may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.