Bob Bruggeworth became the CEO of Qorvo, Inc. (NASDAQ:QRVO) in 2013. First, this article will compare CEO compensation with compensation at similar sized 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Bob Bruggeworth’s Compensation Compare With Similar Sized Companies?
According to our data, Qorvo, Inc. has a market capitalization of US$8.2b, and pays its CEO total annual compensation worth US$8.0m. (This number is for the twelve months until March 2019). Notably, that’s an increase of 15% over the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$826k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.8m.
So Bob Bruggeworth receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at Qorvo has changed over time.
Is Qorvo, Inc. Growing?
Over the last three years Qorvo, Inc. has grown its earnings per share (EPS) by an average of 102% per year (using a line of best fit). In the last year, its revenue is up 4.9%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Has Qorvo, Inc. Been A Good Investment?
Qorvo, Inc. has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Bob Bruggeworth is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Qorvo shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.