Is Entegris, Inc. (NASDAQ:ENTG) Excessively Paying Its CEO?

In 2012 Bertrand Loy was appointed CEO of Entegris, Inc. (NASDAQ:ENTG). First, this article will compare CEO compensation with compensation at similar sized 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 Entegris

How Does Bertrand Loy’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Entegris, Inc. has a market cap of US$4.8b, and is paying total annual CEO compensation of US$4.4m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$832k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$4.7m.

So Bertrand Loy is paid around the average of 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 Entegris, below.

NasdaqGS:ENTG CEO Compensation, March 12th 2019
NasdaqGS:ENTG CEO Compensation, March 12th 2019

Is Entegris, Inc. Growing?

Over the last three years Entegris, Inc. has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). Its revenue is up 15% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Entegris, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Entegris, Inc. for providing a total return of 181% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Bertrand Loy is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Entegris insiders are buying or selling shares.

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

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.