Is Skyworks Solutions, Inc.'s (NASDAQ:SWKS) CEO Overpaid Relative To Its Peers?
In 2016 Liam Griffin was appointed CEO of Skyworks Solutions, Inc. (NASDAQ:SWKS). This analysis aims first to contrast CEO compensation with other large companies. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Skyworks Solutions
How Does Liam Griffin's Compensation Compare With Similar Sized Companies?
Our data indicates that Skyworks Solutions, Inc. is worth US$16b, and total annual CEO compensation is US$9.3m. (This number is for the twelve months until September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$895k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means Liam Griffin receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Skyworks Solutions, below.
Is Skyworks Solutions, Inc. Growing?
Over the last three years Skyworks Solutions, Inc. has grown its earnings per share (EPS) by an average of 1.9% per year (using a line of best fit). Revenue was pretty flat on last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has Skyworks Solutions, Inc. Been A Good Investment?
Skyworks Solutions, Inc. has served shareholders reasonably well, with a total return of 26% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Liam Griffin is paid around what is normal the leaders of larger companies.
We think many would like to see better growth. While the CEO may not be underpaid, we don't think the pay is too generous either. Shareholders may want to check for free if Skyworks Solutions insiders are buying or selling shares.
Important note: Skyworks Solutions 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.
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.
