Andrew R. Moor has been the CEO of Equitable Group Inc. (TSE:EQB) since 2007. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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?
At the time of writing, our data says that Equitable Group Inc. has a market cap of CA$1.9b, and reported total annual CEO compensation of CA$2.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$700k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$1.3b to CA$4.3b. The median total CEO compensation was CA$2.9m.
So Andrew R. Moor is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Equitable Group has changed from year to year.
Is Equitable Group Inc. Growing?
Equitable Group Inc. has increased its earnings per share (EPS) by an average of 7.5% a year, over the last three years (using a line of best fit). It achieved revenue growth of 20% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. 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?
Most shareholders would probably be pleased with Equitable Group Inc. for providing a total return of 96% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Andrew R. Moor is paid around what is normal the leaders of comparable size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. 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.
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