Sanjay Mehrotra has been the CEO of Micron Technology, Inc. (NASDAQ:MU) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Sanjay Mehrotra's Compensation Compare With Similar Sized Companies?
Our data indicates that Micron Technology, Inc. is worth US$54b, and total annual CEO compensation was reported as US$14m for the year to August 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.2m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total 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.
That means Sanjay Mehrotra receives fairly typical remuneration for the CEO of a large company. 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, below, how CEO compensation at Micron Technology has changed over time.
Is Micron Technology, Inc. Growing?
Over the last three years Micron Technology, Inc. has grown its earnings per share (EPS) by an average of 59% per year (using a line of best fit). In the last year, its revenue is down 23%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Micron Technology, Inc. Been A Good Investment?
Boasting a total shareholder return of 180% over three years, Micron Technology, Inc. has done well by shareholders. 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.
Sanjay Mehrotra is paid around what is normal the leaders of larger companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Micron Technology (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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