U.S. Markets open in 8 hrs 33 mins

Does Advanced Micro Devices, Inc.'s (NASDAQ:AMD) CEO Pay Reflect Performance?

Simply Wall St

Lisa Su became the CEO of Advanced Micro Devices, Inc. (NASDAQ:AMD) in 2014. First, this article will compare CEO compensation with compensation at other large companies. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Advanced Micro Devices

How Does Lisa Su's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Advanced Micro Devices, Inc. has a market cap of US$43b, and reported total annual CEO compensation of US$13m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$961k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

That means Lisa Su receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Advanced Micro Devices has changed from year to year.

NasdaqGS:AMD CEO Compensation, December 7th 2019

Is Advanced Micro Devices, Inc. Growing?

Advanced Micro Devices, Inc. has increased its earnings per share (EPS) by an average of 113% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 5.8%.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.

Has Advanced Micro Devices, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Advanced Micro Devices, Inc. for providing a total return of 283% over three years. 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...

Lisa Su is paid around the same as most CEOs of large companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Advanced Micro Devices.

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.

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.

  • Tesla will mark the beginning of the end for this bull market, warns Ralph Nader
    Business
    MarketWatch

    Tesla will mark the beginning of the end for this bull market, warns Ralph Nader

    Apparently so, according to consumer advocate and former presidential candidate Ralph Nader, who issued a stark warning this week, not only on the electric-car maker's pricey stock, but on the stock market as a whole. “Deep in debt, selling less than 400,000 vehicles last year and challenged by several competing electric car models in 2020, Tesla's stock valuation stunningly exceeds VW which sold over 10 million vehicles last year,” Nader added in a follow-up tweet. Of course, his stance didn't sit well with Tesla fans.

  • Goldman Sachs: These 3 Stocks Are Poised to Surge by at Least 15%
    Business
    TipRanks

    Goldman Sachs: These 3 Stocks Are Poised to Surge by at Least 15%

    The stock analysts at Goldman Sachs have been busy. All of this is bread and butter for TipRanks, a platform that makes financial recommendations accountable, and expensive institutional datasets available, to all investors. Three tech stocks that usually fly under the radar – but Goldman sees them all with more than 15% upside potential in the coming year.

  • Mark Cuban: Where the ‘frothy’ market goes from here depends on one thing
    Business
    MarketWatch

    Mark Cuban: Where the ‘frothy’ market goes from here depends on one thing

    “Interest rates were a lot different back then,” he continued. A day earlier, fellow billionaire Paul Tudor Jones, from the sidelines of the World Economic Forum in Davos, said we are currently in the “craziest monetary and fiscal mix in history,” and, at least to him, it's reminiscent of 1999. What happens next in the stock market, he said, depends where interest rates go from here.

  • FICO scores, the 'most important numbers in your financial life,' are about to change
    Business
    USA TODAY

    FICO scores, the 'most important numbers in your financial life,' are about to change

    Americans who fall behind on loan payments, rack up rising debt or take out personal loans to consolidate debt will likely see their credit scores fall under updates planned for the popular FICO scores, according to Fair Isaac Corp., the creator FICO scores. “Most consumers will see less than a 20-point swing in either direction,” David Shellenberger, FICO's vice president, product management, scores, said in a statement on Thursday. About 40 million, he said, will see a sharper shift upward in scores, and 40 million will be hit with a similar-sized drop, Shellenberger said.

  • Dow Jones Futures: Intel, Atlassian Soar On Earnings, Boost 3 Leaderboard Stocks; Broadcom Rises On Apple Deal
    Business
    Investor's Business Daily

    Dow Jones Futures: Intel, Atlassian Soar On Earnings, Boost 3 Leaderboard Stocks; Broadcom Rises On Apple Deal

    Dow Jones futures and S&P 500 futures edged higher Thursday, while Nasdaq futures rose modestly, after the stock market rally showed continued resilience amid an expanding China coronavirus crisis. Chip giant Intel and software maker Atlassian crushed earnings views. Intel stock jumped in extended trade, with AMD stock and Nvidia stock also getting a lift.

  • Chipmaker Intel Smashes Fourth-Quarter Targets, Guides Higher
    Business
    Investor's Business Daily

    Chipmaker Intel Smashes Fourth-Quarter Targets, Guides Higher

    Chipmaking giant Intel late Thursday smashed Wall Street's sales and earnings targets for the fourth quarter and gave an upbeat outlook for 2020. The Intel earnings report sent INTC stock surging in extended trading. Analysts expected Intel earnings of $1.24 a share on sales of $19.2 billion, according to Zacks Investment Research.

  • Wells Fargo former CEO John Stumpf fined $17.5 million, banned for life from banking
    Business
    American City Business Journals

    Wells Fargo former CEO John Stumpf fined $17.5 million, banned for life from banking

    Wells Fargo former Chairman and CEO John Stumpf has agreed to pay a fine of $17.5 million and accept a lifetime ban from the banking industry in a settlement the Office of the Comptroller of the Currency announced Thursday. Hope Hardison, Wells Fargo's (NYSE: WFC) former chief administrative officer and director of corporate human resources, agreed to pay a fine of $2.25 million and a personal cease and desist order that requires her to refrain from certain conduct in the future. The bank's former Chief Risk Officer Michael Loughlin will pay a fine of $1.25 million and a personal cease and desist order.

  • FDA approves local biotech's first rare-cancer drug
    Business
    American City Business Journals

    FDA approves local biotech's first rare-cancer drug

    The FDA has approved the first-ever commercial cancer treatment from Cambridge biotech Epizyme Inc. Just a few years ago, Epizyme had given up on its potential cancer treatment and sold it to a Japanese drug company. On Thursday, the FDA approved the drug, Tazverik, to treat metastatic or locally advanced epitheliod sarcoma, a rare and aggressive form of soft tissue cancer. Tazverik is the first drug specifically designed for the cancer, which is diagnosed in 150 to 200 people each year, according to Epizyme.

  • Britain's Prince Charles appears to snub Pence
    World
    Associated Press Videos

    Britain's Prince Charles appears to snub Pence

    Britain's Prince Charles appeared to snub U.S. Vice President Mike Pence on Thursday during his arrival to the World Holocaust Forum event. Jan.

  • Surgical Robotics Leader Dives As Sales, Earnings Growth Decelerate
    Business
    Investor's Business Daily

    Surgical Robotics Leader Dives As Sales, Earnings Growth Decelerate

    Surgical robotics giant Intuitive Surgical reported decelerating sales and earnings growth Thursday, leading ISRG stock to slide in after-hours trading. During the fourth quarter, Intuitive Surgical profit jumped nearly 18% to $3.48 a share. Likewise, the surgical robotics company pulled in $1.28 billion in fourth-quarter sales, growing 22% year over year to beat expectations for $1.2 billion.

  • Qorvo and Skyworks Weigh Bids for Broadcom’s RF Chip Unit
    Business
    Bloomberg

    Qorvo and Skyworks Weigh Bids for Broadcom’s RF Chip Unit

    Semiconductor makers Qorvo Inc. and Skyworks Solutions Inc. are weighing bids for Broadcom Inc.

  • I’m 38 with $315,000 saved for retirement, but have $30,000 in debt. Should I lower my 401(k) contributions to get rid of that debt?
    Business
    MarketWatch

    I’m 38 with $315,000 saved for retirement, but have $30,000 in debt. Should I lower my 401(k) contributions to get rid of that debt?

    Dear Catey, I currently have about $315,000 in retirement savings and am 38 years old. I have about $30,000 in consumer debt (this is the only debt we carry, no car payment or mortgage) — about $24,000 of which is an unsecured loan that I'm paying about 10% interest on; the rest is on credit cards that are on a 0% promotional period and that I hopefully pay off before the 0% period expires in October 2020. I'm trying to pay down my debt and continue to save aggressively for retirement…I've made minimal improvements over the past couple of years paying down my debt and continue to play the balance transfer game on credit cards to retain 0% interest rates or other low rate options.

  • Young trader’s epic Beyond Meat stock misfire: ‘Biggest mistake of my life’
    Business
    MarketWatch

    Young trader’s epic Beyond Meat stock misfire: ‘Biggest mistake of my life’

    For veteran Wall Street types, $12,000 is a rounding error, but for a guy getting his feet wet in the options pits, losing that much will leave a scar. Unfortunately, that's what happened this week to an anonymous trader whom we'll call “Juice,” if the sob story he shared on Reddit is accurate. “I thought I'd give options a try because I was doing pretty well swing trading and it was probably the biggest mistake of my life,” he wrote in a post.

  • Business
    Barrons.com

    10 Companies Microsoft Could Buy to Boost Its Growing Cloud Business

    It might be time for (MSFT) to go shopping. Piper Sandler analyst Brent Bracelin asserts in a research note Thursday that 2020 could be a defining year for the software giant. He argues that Microsoft (ticker: MSFT) has “a unique opportunity to further elevate its cloud leadership position through share gains and needle-moving M&A.” The company's huge run to a $1 trillion-plus valuation has been driven by the remarkable growth in its Azure cloud business, which is smaller than (AMZN)'s (AMZN) Amazon Web Services but growing faster—and Bracelin thinks the company can press its advantage with a smart deals.

  • Intel enjoys big rebound in cloud, but the future is still hazy
    Business
    MarketWatch

    Intel enjoys big rebound in cloud, but the future is still hazy

    Intel Corp. wrapped up a rocky 2019 by reporting record sales thanks to a big jump in sales of chips for data centers and cloud computing, but that rebound may just be temporary. The chip giant reported Thursday that its quarterly revenue surged past $20 billion for the first time ever at the end of 2019, fueled in part by a 19% jump in data center sales to $7.2 billion in the fourth quarter, a record performance for Intel's (INTC) second largest business. The data center arena has been feast or famine for the entire chip industry, as the sporadic ups and downs of hyperscaler companies and public cloud service providers have created doubts about where the cloud boom is headed.

  • Why this analyst says Boeing and GE are a buy
    Business
    Yahoo Finance Video

    Why this analyst says Boeing and GE are a buy

    Kramer Capital Research CIO Hillary Cramer joins The Final Round to break down why investors should buy Boeing and GE shares when they fall.

  • Business
    TheStreet.com

    7 Low-Risk Investments With High Returns in 2020

    The classic risk-free investment is Treasury securities, but even they carry some degree of price risk from changes in interest rates, though the risk of default is slim to none. To be clear, dividend-paying stocks do carry risk as they are still subject to the same factors that impact the stock market. Investing for dividend yield is about finding those companies that pay higher dividends as a source of yield.

  • These 10 Rules Made Warren Buffett a Billionaire
    Business
    MoneyWise

    These 10 Rules Made Warren Buffett a Billionaire

    Warren Buffett may be worth tens of billions, but he still lives simply, and his strategies for smart investing and amassing wealth aren't too complicated either. Buffett's first key to prosperity has little to do with picking stocks. "Without good communication skills, you won't be able to convince people to follow you even though you see over the mountain and they don't," Buffett once told a Stanford MBA student.

  • Analysts: These 3 “Strong Buy” Penny Stocks Could Gain Over 50%
    Business
    TipRanks

    Analysts: These 3 “Strong Buy” Penny Stocks Could Gain Over 50%

    Using TipRanks' Stock Screener tool, we filtered the results by current share price, analyst consensus and price target upside to track down 3 penny stocks that have amassed enough analyst support to earn a “Strong Buy” consensus rating. Adding to the good news, each pick boasts over 50% upside potential. Let's dive in.

  • A Tale of 3 Healthcare Stocks – 2 to Buy, and 1 to Sell
    Business
    TipRanks

    A Tale of 3 Healthcare Stocks – 2 to Buy, and 1 to Sell

    So when Oppenheimer announced on Wednesday that it's taken a good hard look at the healthcare industry, and come up with two stocks it's confident it can recommend buying -- and one it's pretty sure should be sold -- this is advice investors should give careful consideration. Let's find out what Oppenheimer has to say, beginning with: Regeneron is one of a strange breed in biotech -- a company that actually makes money. years in business, Tarrytown, NY-based Regeneron develops medicines to treat a wide array of illnesses, everything from age-related macular degeneration and diabetic retinopathy (Eylea) to atopic dermatitis (Dupixent) to atherosclerotic cardiovascular disease (Praluent) and l...

  • Business
    NerdWallet

    Who Should Consider a Roth Conversion Now?

    The new law requires most IRAs inherited by people other than spouses to be drained within 10 years, which can lead to much higher tax bills for heirs. Spouses still have the option of treating an inherited IRA as their own and taking money out over their lifetimes. At the same time, the Secure Act delayed when required minimum distributions have to begin for most retirement account owners, increasing the age for mandatory distributions from 70 1/2 to 72.

  • Business
    MarketWatch

    Broadcom: Deals with Apple could be worth $15 billion

    Broadcom Inc. (avgo) disclosed Thursday afternoon new deals with Apple Inc. (aapl) worth $15 billion, and shares moved higher in extended trading. In a filing with the Securities and Exchange Commission, the chip maker said that it had signed two multiyear statement of work agreements with the iPhone manufacturer for components that will be included in Apple products beginning this month. The two deals are in addition to an agreement to supply RF chips that Broadcom disclosed last summer.

  • GE Stock Rebounds From Recent Slump As 'The Story Has Shifted'
    Business
    Investor's Business Daily

    GE Stock Rebounds From Recent Slump As 'The Story Has Shifted'

    General Electric is in a "budding turnaround" and should see minimal disruption from the Boeing 737 Max crisis, Morgan Stanley said. GE stock rallied back near a buy point, snapping a string of down days. Morgan Stanley analyst Joshua Pokrzywinski on Wednesday hiked his GE stock rating to overweight from equal weight and the price target to 14 from 11.

  • Business
    Benzinga

    BofA Raises Apple's Price Target, Expects 'Another Leg Up' Following Q1 Earnings

    Wamsi Mohan reiterated a Buy rating on Apple and raised the price target from $330 to $340. Strong sales of accessories such as AirPods and iPhone 11 should help Apple report December quarter revenues of $89 billion, at the high end of the company's guidance range, Mohan said. The strong uptake of iPhone 11 shows the company can ring in a steady stream of sales despite no major function changes in design.

  • Mortgage rates fall to the lowest level in three months — but this is a double-edged sword for home buyers
    Business
    MarketWatch

    Mortgage rates fall to the lowest level in three months — but this is a double-edged sword for home buyers

    The 30-year fixed-rate mortgage averaged 3.6% during the week ending Jan. 23, down five basis points from the previous week, Freddie Mac (FMCC) reported Thursday. The 15-year fixed-rate mortgage also fell five basis points to 3.04%, according to Freddie Mac. The 5/1 adjustable-rate mortgage, meanwhile, dropped a 11 basis points to an average of 3.28%.