A Quick Analysis On Security National Financial's (NASDAQ:SNFC.A) CEO Salary
This article will reflect on the compensation paid to Scott Quist who has served as CEO of Security National Financial Corporation (NASDAQ:SNFC.A) since 2012. This analysis will also assess whether Security National Financial pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Security National Financial
How Does Total Compensation For Scott Quist Compare With Other Companies In The Industry?
According to our data, Security National Financial Corporation has a market capitalization of US$121m, and paid its CEO total annual compensation worth US$708k over the year to December 2019. That's a modest increase of 7.1% on the prior year. Notably, the salary which is US$528.5k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$514k. Hence, we can conclude that Scott Quist is remunerated higher than the industry median. What's more, Scott Quist holds US$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$528k | US$489k | 75% |
Other | US$179k | US$172k | 25% |
Total Compensation | US$708k | US$661k | 100% |
Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. It's interesting to note that Security National Financial pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Security National Financial Corporation's Growth
Security National Financial Corporation has seen its earnings per share (EPS) increase by 43% a year over the past three years. It achieved revenue growth of 36% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Security National Financial Corporation Been A Good Investment?
We think that the total shareholder return of 35%, over three years, would leave most Security National Financial Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, Security National Financial Corporation is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Scott's performance creates value for the company.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Security National Financial that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
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