Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2007 Tunç Doluca was appointed CEO of Maxim Integrated Products, Inc. (NASDAQ:MXIM). First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tunç Doluca’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Maxim Integrated Products, Inc. has a market cap of US$16b, and is paying total annual CEO compensation of US$8.1m. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$700k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
So Tunç Doluca is paid around the average of the companies we looked at. 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 Maxim Integrated Products has changed over time.
Is Maxim Integrated Products, Inc. Growing?
Maxim Integrated Products, Inc. has increased its earnings per share (EPS) by an average of 28% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.9%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Maxim Integrated Products, Inc. Been A Good Investment?
I think that the total shareholder return of 79%, over three years, would leave most Maxim Integrated Products, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Tunç Doluca is paid around what is normal the leaders of larger companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Maxim Integrated Products shares with their own money (free access).
If you want to buy a stock that is better than Maxim Integrated Products, this free list of high return, low debt companies is a great place to look.
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 email@example.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.