Is Vishay Intertechnology, Inc.'s (NYSE:VSH) CEO Overpaid Relative To Its Peers?
In 2005 Gerald Paul was appointed CEO of Vishay Intertechnology, Inc. (NYSE:VSH). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
View our latest analysis for Vishay Intertechnology
How Does Gerald Paul's Compensation Compare With Similar Sized Companies?
According to our data, Vishay Intertechnology, Inc. has a market capitalization of US$2.2b, and pays its CEO total annual compensation worth US$7.1m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.
As you can see, Gerald Paul is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Vishay Intertechnology, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Vishay Intertechnology has changed over time.
Is Vishay Intertechnology, Inc. Growing?
On average over the last three years, Vishay Intertechnology, Inc. has grown earnings per share (EPS) by 99% each year (using a line of best fit). Its revenue is up 5.6% 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Vishay Intertechnology, Inc. Been A Good Investment?
Vishay Intertechnology, Inc. has served shareholders reasonably well, with a total return of 18% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We examined the amount Vishay Intertechnology, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling Vishay Intertechnology shares (free trial).
Important note: Vishay Intertechnology 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.
