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Peter Kirlin has been the CEO of Photronics, Inc. (NASDAQ:PLAB) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Peter Kirlin's Compensation Compare With Similar Sized Companies?
Our data indicates that Photronics, Inc. is worth US$989m, and total annual CEO compensation was reported as US$1.5m for the year to October 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$591k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.5m.
Most shareholders would consider it a positive that Peter Kirlin takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Photronics, below.
Is Photronics, Inc. Growing?
Over the last three years Photronics, Inc. has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). Its revenue is up 2.9% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Photronics, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Photronics, Inc. for providing a total return of 33% 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.
Photronics, Inc. is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Peter Kirlin deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Photronics shares (free trial).
If you want to buy a stock that is better than Photronics, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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