Fusen Chen became the CEO of Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Fusen Chen's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Kulicke and Soffa Industries, Inc. has a market cap of US$1.3b, and is paying total annual CEO compensation of US$5.1m. (This figure is for the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$650k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.1m.
So Fusen Chen is paid around the average of 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 a visual representation of the CEO compensation at Kulicke and Soffa Industries, below.
Is Kulicke and Soffa Industries, Inc. Growing?
On average over the last three years, Kulicke and Soffa Industries, Inc. has grown earnings per share (EPS) by 7.0% each year (using a line of best fit). It saw its revenue drop -36% over the last year.
I would prefer it if there was revenue growth, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Kulicke and Soffa Industries, Inc. Been A Good Investment?
Boasting a total shareholder return of 64% over three years, Kulicke and Soffa Industries, 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.
Fusen Chen is paid around what is normal the leaders of comparable size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I'd venture that the CEO pay is appropriate. Shareholders may want to check for free if Kulicke and Soffa Industries insiders are buying or selling shares.
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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