Chipmaker Cirrus Logic Inc. handed out a passel of pay raises to company executives this week even though the firm has had a rough ride on the stock market so far this year.
The Austin-based company increased CEO Jason Rhode’s salary from $525,000 to $625,000 and Chief Financial Officer Thurman Case’s salary from $290,000 to $307,400. Three other senior executives received raises, according to a Friday filing with the U.S. Securities and Exchange Commission.
The pay hikes come amid a declining stock price that has slumped 24 percent this year — tumbling from $29 per share in January to $22 on Friday.
Still, the company's latest financial figures showed a marked improvement from a year earlier. In July, the company posted a first-quarter profit of $20.6 million on revenue of $155.1 million compared with a profit of $6.9 million on revenue of $99 million during the same period last year.
Cirrus Logic (Nasdaq: CRUS), founded in 1984, develops integrated circuits for products such as smartphones, tablets and other electronic devices. It employs about 652 workers, SEC filings indicate.
An April lawsuit accused company executives and board members of dumping millions of dollars worth of stock last year before it was disclosed that the company had increased its dependence on Apple Inc. (Nasdaq: AAPL) as a customer. The lawsuit indicates that 91 percent of Cirrus Logic’s sales were based on Apple products during the third quarter of fiscal 2013.
I think they should be paid based on stock PERFORMANCE!! too much #$%$ going on and not enough communication with shareholders!! sorry!! that is the truth guys!! something is going on I can sense it cant you??!!
I consider this a good sign for investors; it means business is going to be great in foreseeable future. Otherwise, such increments should not have gotten approved.
Stock valuation is a completely diff story, they will factor in time.