Sanmina Corporation's (NASDAQ:SANM) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Sanmina's Annual General Meeting to take place on 11th of March
Salary of US$1.25m is part of CEO Jure Sola's total remuneration
Total compensation is 125% above industry average
Sanmina's EPS grew by 31% over the past three years while total shareholder return over the past three years was 66%
Performance at Sanmina Corporation (NASDAQ:SANM) has been reasonably good and CEO Jure Sola has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11th of March. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for Sanmina
Comparing Sanmina Corporation's CEO Compensation With The Industry
According to our data, Sanmina Corporation has a market capitalization of US$3.7b, and paid its CEO total annual compensation worth US$15m over the year to September 2023. That's a notable decrease of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.
In comparison with other companies in the American Electronic industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$6.6m. Accordingly, our analysis reveals that Sanmina Corporation pays Jure Sola north of the industry median. Furthermore, Jure Sola directly owns US$88m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.2m | US$1.2m | 8% |
Other | US$14m | US$16m | 92% |
Total Compensation | US$15m | US$17m | 100% |
Talking in terms of the industry, salary represented approximately 30% of total compensation out of all the companies we analyzed, while other remuneration made up 70% of the pie. In Sanmina's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Sanmina Corporation's Growth Numbers
Over the past three years, Sanmina Corporation has seen its earnings per share (EPS) grow by 31% per year. Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Sanmina Corporation Been A Good Investment?
We think that the total shareholder return of 66%, over three years, would leave most Sanmina Corporation shareholders smiling. 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.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Sanmina that investors should think about before committing capital to this stock.
Switching gears from Sanmina, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
