Tunç Doluca has been the CEO of Maxim Integrated Products, Inc. (NASDAQ:MXIM) since 2007. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Tunç Doluca’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Maxim Integrated Products, Inc. has a market cap of US$16b, and is paying total annual CEO compensation of US$8.1m. (This is based on the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$700k. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
So Tunç Doluca receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Maxim Integrated Products, below.
Is Maxim Integrated Products, Inc. Growing?
Over the last three years Maxim Integrated Products, Inc. has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). It achieved revenue growth of 9.9% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Maxim Integrated Products, Inc. Been A Good Investment?
Boasting a total shareholder return of 85% over three years, Maxim Integrated Products, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Tunç Doluca is close enough to the median pay for a CEO of a large company .
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 Maxim Integrated Products.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.