Agilent Technologies, Inc.'s (NYSE:A) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Agilent Technologies will host its Annual General Meeting on 15th of March
• Total pay for CEO Mike McMullen includes US$1.28m salary
• The total compensation is 43% higher than the average for the industry
• Agilent Technologies' total shareholder return over the past three years was 127% while its EPS grew by 22% over the past three years

CEO Mike McMullen has done a decent job of delivering relatively good performance at Agilent Technologies, Inc. (NYSE:A) recently. As shareholders go into the upcoming AGM on 15th of March, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Agilent Technologies

Comparing Agilent Technologies, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Agilent Technologies, Inc. has a market capitalization of US$42b, and reported total annual CEO compensation of US$17m for the year to October 2022. That's just a smallish increase of 4.3% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.

On comparing similar companies in the American Life Sciences industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$12m. This suggests that Mike McMullen is paid more than the median for the industry. Furthermore, Mike McMullen directly owns US$28m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	US$1.3m	US$1.3m	8%
Other	US$15m	US$15m	92%
Total Compensation	US$17m	US$16m	100%

Speaking on an industry level, nearly 12% of total compensation represents salary, while the remainder of 88% is other remuneration. In Agilent Technologies' 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 Agilent Technologies, Inc.'s Growth Numbers

Agilent Technologies, Inc.'s earnings per share (EPS) grew 22% per year over the last three years. Its revenue is up 7.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Agilent Technologies, Inc. Been A Good Investment?

Boasting a total shareholder return of 127% over three years, Agilent Technologies, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Agilent Technologies that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.