Here's Why Shareholders Will Not Be Complaining About KLA Corporation's (NASDAQ:KLAC) CEO Pay Packet

Key Insights

• KLA's Annual General Meeting to take place on 5th of November
• Total pay for CEO Rick Wallace includes US$1.19m salary
• The overall pay is comparable to the industry average
• Over the past three years, KLA's EPS grew by 12% and over the past three years, the total shareholder return was 308%

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The performance at KLA Corporation (NASDAQ:KLAC) has been quite strong recently and CEO Rick Wallace has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 5th of November. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for KLA

Comparing KLA Corporation's CEO Compensation With The Industry

According to our data, KLA Corporation has a market capitalization of US$159b, and paid its CEO total annual compensation worth US$25m over the year to June 2025. We note that's an increase of 9.9% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

In comparison with other companies in the American Semiconductor industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$21m. This suggests that KLA remunerates its CEO largely in line with the industry average. Moreover, Rick Wallace also holds US$43m worth of KLA stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. Investors may find it interesting that KLA paid a marginal salary to Rick Wallace, over the past year, focusing on non-salary compensation instead. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at KLA Corporation's Growth Numbers

KLA Corporation has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 24%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has KLA Corporation Been A Good Investment?

Boasting a total shareholder return of 308% over three years, KLA Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

KLA primarily uses non-salary benefits to reward its CEO. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

Whatever your view on compensation, you might want to check if insiders are buying or selling KLA shares (free trial).

Important note: KLA is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.