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How Much Is Fiducian Group Limited (ASX:FID) Paying Its CEO?

Simply Wall St
·3 min read

This article will reflect on the compensation paid to Indy Singh who has served as CEO of Fiducian Group Limited (ASX:FID) since 1996. This analysis will also assess whether Fiducian Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Fiducian Group

How Does Total Compensation For Indy Singh Compare With Other Companies In The Industry?

Our data indicates that Fiducian Group Limited has a market capitalization of AU$179m, and total annual CEO compensation was reported as AU$595k for the year to June 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of AU$555.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below AU$275m, reported a median total CEO compensation of AU$503k. This suggests that Fiducian Group remunerates its CEO largely in line with the industry average. Furthermore, Indy Singh directly owns AU$62m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2020

2019

Proportion (2020)

Salary

AU$555k

AU$539k

93%

Other

AU$40k

AU$47k

7%

Total Compensation

AU$595k

AU$586k

100%

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. Fiducian Group pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

Fiducian Group Limited's Growth

Fiducian Group Limited has seen its earnings per share (EPS) increase by 11% a year over the past three years. Its revenue is up 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Fiducian Group Limited Been A Good Investment?

Fiducian Group Limited has served shareholders reasonably well, with a total return of 19% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we noted earlier, Fiducian Group pays its CEO in line with similar-sized companies belonging to the same industry. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Fiducian Group that investors should think about before committing capital to this stock.

Switching gears from Fiducian Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.