How Much Is SEI Investments Company (NASDAQ:SEIC) CEO Getting Paid?

Al West became the CEO of SEI Investments Company (NASDAQ:SEIC) in 1968, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for SEI Investments

Comparing SEI Investments Company's CEO Compensation With the industry

Our data indicates that SEI Investments Company has a market capitalization of US$8.2b, and total annual CEO compensation was reported as US$2.3m for the year to December 2019. Notably, that's an increase of 8.1% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$750k.

On comparing similar companies from the same industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$8.2m. This suggests that Al West is paid below the industry median. What's more, Al West holds US$1.1b 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, around 14% of total compensation represents salary and 86% is other remuneration. SEI Investments is paying a higher share of its remuneration through a salary in comparison to the overall 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 SEI Investments Company's Growth Numbers

Over the past three years, SEI Investments Company has seen its earnings per share (EPS) grow by 9.1% per year. In the last year, its revenue is up 1.9%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. 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 SEI Investments Company Been A Good Investment?

Since shareholders would have lost about 18% over three years, some SEI Investments Company investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Al is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But then, EPS growth is lacking and so are the returns to shareholders. So while we don't think, Al is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

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. We did our research and spotted 1 warning sign for SEI Investments that investors should look into moving forward.

Switching gears from SEI Investments, 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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