Under the guidance of CEO Indy Singh, Fiducian Group Ltd (ASX:FID) has performed reasonably well recently. As shareholders go into the upcoming AGM on 20 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Fiducian Group

Comparing Fiducian Group Ltd's CEO Compensation With the industry

At the time of writing, our data shows that Fiducian Group Ltd has a market capitalization of AU$264m, and reported total annual CEO compensation of AU$663k for the year to June 2021. Notably, that's an increase of 14% over the year before. Notably, the salary which is AU$561.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between AU$136m and AU$543m, we discovered that the median CEO total compensation of that group was AU$785k. This suggests that Fiducian Group remunerates its CEO largely in line with the industry average. Furthermore, Indy Singh directly owns AU$92m worth of shares in the company, implying that they are deeply invested in the company's success.

Component 2021 2020 Proportion (2021) Salary AU$561k AU$555k 85% Other AU$102k AU$27k 15% Total Compensation AU$663k AU$582k 100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. According to our research, Fiducian Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance. ceo-compensation

Fiducian Group Ltd's Growth

Fiducian Group Ltd's earnings per share (EPS) grew 9.6% per year over the last three years. Its revenue is up 7.0% over the last year.



We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 Ltd Been A Good Investment?

Most shareholders would probably be pleased with Fiducian Group Ltd for providing a total return of 118% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

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 Fiducian Group that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this freelist of interesting companies that have HIGH return on equity and low debt.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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