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How Should Investors React To Equitable Group Inc’s (TSE:EQB) CEO Pay?

Andrew R. Moor became the CEO of Equitable Group Inc (TSE:EQB) in 2007. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Equitable Group

How Does Andrew R. Moor’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Equitable Group Inc has a market cap of CA$1.0b, and is paying total annual CEO compensation of CA$2.4m. (This number is for the twelve months until 2016). While we always look at total compensation first, we note that the salary component is less, at CA$645k. When we examined a selection of companies with market caps ranging from CA$532m to CA$2.1b, we found the median CEO compensation was CA$2.0m.

So Andrew R. Moor receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Equitable Group, below.

TSX:EQB CEO Compensation December 10th 18

Is Equitable Group Inc Growing?

On average over the last three years, Equitable Group Inc has grown earnings per share (EPS) by 9.1% each year. In the last year, its revenue is up 6.3%.

I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Equitable Group Inc Been A Good Investment?

Equitable Group Inc has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Remuneration for Andrew R. Moor is close enough to the median pay for a CEO of a similar sized company .

We think many would like to see better growth. 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 Equitable Group (free visualization of insider trades).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.