The performance at Axos Financial, Inc. (NYSE:AX) has been quite strong recently and CEO Greg Garrabrants has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 21 October 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Axos Financial

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

According to our data, Axos Financial, Inc. has a market capitalization of US$3.3b, and paid its CEO total annual compensation worth US$5.2m over the year to June 2021. That's just a smallish increase of 4.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$700k.

On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$5.0m. From this we gather that Greg Garrabrants is paid around the median for CEOs in the industry. Moreover, Greg Garrabrants also holds US$89m worth of Axos Financial stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Axos Financial sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Axos Financial, Inc.'s Growth

Axos Financial, Inc. has seen its earnings per share (EPS) increase by 15% a year over the past three years. It achieved revenue growth of 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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?

We think that the total shareholder return of 61%, over three years, would leave most Axos Financial, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

Whatever your view on compensation, you might want to check if insiders are buying or selling Axos Financial shares (free trial).

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. 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.

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