Sean O'Connor became the CEO of INTL FCStone Inc. (NASDAQ:INTL) in 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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$974m, and reported total annual CEO compensation of US$2.7m 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. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.5m.
So Sean O'Connor receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at INTL FCStone has changed from year to year.
Is INTL FCStone Inc. Growing?
INTL FCStone Inc. has increased its earnings per share (EPS) by an average of 29% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 19%.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has INTL FCStone Inc. Been A Good Investment?
Boasting a total shareholder return of 38% over three years, INTL FCStone Inc. has done well by shareholders. 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.
Sean O'Connor is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying INTL FCStone shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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