Yahoo Finance Does Maxim Integrated Products, Inc.'s (NASDAQ:MXIM) CEO Salary Reflect Performance?
Tunç Doluca became the CEO of Maxim Integrated Products, Inc. (NASDAQ:MXIM) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Maxim Integrated Products
How Does Tunç Doluca's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Maxim Integrated Products, Inc. has a market cap of US$17b, and reported total annual CEO compensation of US$9.1m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at US$800k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Tunç Doluca receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Maxim Integrated Products, below.
Is Maxim Integrated Products, Inc. Growing?
Maxim Integrated Products, Inc. has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). It saw its revenue drop 13% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Maxim Integrated Products, Inc. Been A Good Investment?
Boasting a total shareholder return of 63% over three years, Maxim Integrated Products, 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.
In Summary...
Remuneration for Tunç Doluca is close enough to the median pay for a CEO of a large company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Maxim Integrated Products shares with their own money (free access).
If you want to buy a stock that is better than Maxim Integrated Products, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
