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.
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.
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.
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.
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