This article will reflect on the compensation paid to Greg Garrabrants who has served as CEO of Axos Financial, Inc. (NYSE:AX) since 2007. This analysis will also assess whether Axos Financial pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Axos Financial

How Does Total Compensation For Greg Garrabrants Compare With Other Companies In The Industry?

At the time of writing, our data shows that Axos Financial, Inc. has a market capitalization of US$2.3b, and reported total annual CEO compensation of US$4.9m for the year to June 2020. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at US$700k.

For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.5m. This suggests that Greg Garrabrants is paid more than the median for the industry. What's more, Greg Garrabrants holds US$60m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. It's interesting to note that Axos Financial allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Axos Financial, Inc.'s Growth Numbers

Axos Financial, Inc. has seen its earnings per share (EPS) increase by 17% a year over the past three years. Its revenue is up 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Axos Financial, Inc. Been A Good Investment?

Axos Financial, Inc. has not done too badly by shareholders, with a total return of 6.5%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we noted earlier, Axos Financial pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth over three years is certainly impressive. We also think investor returns are steady over the same time period. So, considering the EPS growth we do not wish to criticize CEO compensation, though we'd recommend further research on management.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Axos Financial that investors should be aware of in a dynamic business environment.

Switching gears from Axos Financial, 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.

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