Is Teradyne Inc’s (NYSE:TER) CEO Pay Justified?
Mark Jagiela became the CEO of Teradyne Inc (NYSE:TER) in 2014. 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. 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.
View our latest analysis for Teradyne
How Does Mark Jagiela’s Compensation Compare With Similar Sized Companies?
According to our data, Teradyne Inc has a market capitalization of US$6.3b, and pays its CEO total annual compensation worth US$7.2m. Notably, that’s an increase of 36% over the year before. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$6.9m.
So Mark Jagiela is paid around the average of the companies we looked at. 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 Teradyne, below.
Is Teradyne Inc Growing?
Teradyne Inc has increased its earnings per share (EPS) by an average of 39% a year, over the last three years Its revenue is up 1.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Teradyne Inc Been A Good Investment?
Most shareholders would probably be pleased with Teradyne Inc for providing a total return of 79% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Mark Jagiela is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance!
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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.
