Steve Kelley has been the CEO of Amkor Technology, Inc. (NASDAQ:AMKR) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Steve Kelley's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Amkor Technology, Inc. has a market cap of US$1.7b, and is paying total annual CEO compensation of US$3.9m. (This number is for the twelve months until December 2018). That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at US$859k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.0m.
So Steve Kelley receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Amkor Technology, below.
Is Amkor Technology, Inc. Growing?
Over the last three years Amkor Technology, Inc. has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). In the last year, its revenue is down -3.4%.
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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Amkor Technology, Inc. Been A Good Investment?
Amkor Technology, Inc. has served shareholders reasonably well, with a total return of 13% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Steve Kelley is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Amkor Technology (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.