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Is Entegris, Inc.’s (NASDAQ:ENTG) CEO Overpaid Relative To Its Peers?

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In 2012 Bertrand Loy was appointed CEO of Entegris, Inc. (NASDAQ:ENTG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Entegris

How Does Bertrand Loy’s Compensation Compare With Similar Sized Companies?

According to our data, Entegris, Inc. has a market capitalization of US$4.6b, and pays its CEO total annual compensation worth US$4.4m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$832k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$4.8m.

So Bertrand Loy receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Entegris has changed over time.

NASDAQGS:ENTG CEO Compensation February 17th 19
NASDAQGS:ENTG CEO Compensation February 17th 19

Is Entegris, Inc. Growing?

Over the last three years Entegris, Inc. has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). In the last year, its revenue is up 15%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Entegris, Inc. Been A Good Investment?

Boasting a total shareholder return of 186% over three years, Entegris, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

Bertrand Loy is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Entegris shares (free trial).

Important note: Entegris may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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 editorial-team@simplywallst.com.

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