Does Axcelis Technologies, Inc.'s (NASDAQ:ACLS) CEO Pay Reflect Performance?

In 2002 Mary Puma was appointed CEO of Axcelis Technologies, Inc. (NASDAQ:ACLS). 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. 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.

View our latest analysis for Axcelis Technologies

How Does Mary Puma's Compensation Compare With Similar Sized Companies?

Our data indicates that Axcelis Technologies, Inc. is worth US$552m, and total annual CEO compensation was reported as US$2.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$585k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$2.3m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Axcelis Technologies. Speaking on an industry level, we can see that nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. It's interesting to note that Axcelis Technologies pays out a greater portion of remuneration through salary, in comparison to the wider industry.

That means Mary Puma receives fairly typical remuneration for the CEO of a company that size. 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 Axcelis Technologies has changed over time.

Is Axcelis Technologies, Inc. Growing?

Over the last three years Axcelis Technologies, Inc. has shrunk its earnings per share by an average of 8.1% per year (measured with a line of best fit). In the last year, its revenue is down 23%.

Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Axcelis Technologies, Inc. Been A Good Investment?

With a three year total loss of 6.3%, Axcelis Technologies, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Mary Puma is close enough to the median pay for a CEO of a similar sized company .

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Looking into other areas, we've picked out 2 warning signs for Axcelis Technologies that investors should think about before committing capital to this stock.

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

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.

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