Is Advanced Micro Devices Inc’s (NASDAQ:AMD) CEO Salary Justified?

In 2014 Lisa Su was appointed CEO of Advanced Micro Devices Inc (NASDAQ:AMD). This analysis aims first to contrast CEO compensation with other large companies. Then we’ll look at a snap shot of the business growth. 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.

Check out our latest analysis for Advanced Micro Devices

How Does Lisa Su’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Advanced Micro Devices Inc has a market cap of US$20b, and is paying total annual CEO compensation of US$11m. That’s below the compensation, last year. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m.

So Lisa Su receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Advanced Micro Devices, below.

NasdaqGS:AMD CEO Compensation November 17th 18
NasdaqGS:AMD CEO Compensation November 17th 18

Is Advanced Micro Devices Inc Growing?

Advanced Micro Devices Inc has increased its earnings per share (EPS) by an average of 93% a year, over the last three years It achieved revenue growth of 29% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Advanced Micro Devices Inc Been A Good Investment?

I think that the total shareholder return of 885%, over three years, would leave most Advanced Micro Devices Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Remuneration for Lisa Su is close enough to the median pay for a CEO of a large company .

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Advanced Micro Devices Inc insiders are buying or selling shares.

Or you might rather take a peek at this analytical visualization of historic cash flow, 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.