Does Axcelis Technologies, Inc.'s (NASDAQ:ACLS) CEO Salary Compare Well With Others?
Mary Puma has been the CEO of Axcelis Technologies, Inc. (NASDAQ:ACLS) since 2002. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for Axcelis Technologies
How Does Mary Puma's Compensation Compare With Similar Sized Companies?
Our data indicates that Axcelis Technologies, Inc. is worth US$474m, and total annual CEO compensation is US$2.6m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$585k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.9m.
Thus we can conclude that Mary Puma receives more in total compensation than the median of a group of companies in the same market, and of similar size to Axcelis Technologies, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Axcelis Technologies, below.
Is Axcelis Technologies, Inc. Growing?
On average over the last three years, Axcelis Technologies, Inc. has grown earnings per share (EPS) by 36% each year (using a line of best fit). In the last year, its revenue is down -21%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Axcelis Technologies, Inc. Been A Good Investment?
Axcelis Technologies, Inc. has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We examined the amount Axcelis Technologies, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Whatever your view on compensation, you might want to check if insiders are buying or selling Axcelis Technologies shares (free trial).
If you want to buy a stock that is better than Axcelis Technologies, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
