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Our Take On Plexus Corp.'s (NASDAQ:PLXS) CEO Salary

Simply Wall St

Todd Kelsey became the CEO of Plexus Corp. (NASDAQ:PLXS) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Plexus

How Does Todd Kelsey's Compensation Compare With Similar Sized Companies?

Our data indicates that Plexus Corp. is worth US$1.8b, and total annual CEO compensation is US$6.7m. (This is based on the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at US$915k. 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.

It would therefore appear that Plexus Corp. pays Todd Kelsey more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Plexus, below.

NasdaqGS:PLXS CEO Compensation, September 10th 2019
NasdaqGS:PLXS CEO Compensation, September 10th 2019

Is Plexus Corp. Growing?

Plexus Corp. has increased its earnings per share (EPS) by an average of 9.1% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.

Has Plexus Corp. Been A Good Investment?

Most shareholders would probably be pleased with Plexus Corp. for providing a total return of 34% 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.

In Summary...

We compared total CEO remuneration at Plexus Corp. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Plexus.

If you want to buy a stock that is better than Plexus, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.