Most Shareholders Will Probably Agree With NVE Corporation's (NASDAQ:NVEC) CEO Compensation

Key Insights

• NVE to hold its Annual General Meeting on 7th of August
• CEO Daniel Baker's total compensation includes salary of US$435.5k
• The total compensation is 64% less than the average for the industry
• NVE's EPS declined by 1.2% over the past three years while total shareholder return over the past three years was 40%

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Performance at NVE Corporation (NASDAQ:NVEC) has been rather uninspiring recently and shareholders may be wondering how CEO Daniel Baker plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 7th of August. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for NVE

How Does Total Compensation For Daniel Baker Compare With Other Companies In The Industry?

At the time of writing, our data shows that NVE Corporation has a market capitalization of US$307m, and reported total annual CEO compensation of US$587k for the year to March 2025. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$435.5k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the American Semiconductor industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.6m. This suggests that Daniel Baker is paid below the industry median. Furthermore, Daniel Baker directly owns US$3.9m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	US$436k	US$420k	74%
Other	US$151k	US$158k	26%
Total Compensation	US$587k	US$578k	100%

Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. It's interesting to note that NVE pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

NVE Corporation's Growth

NVE Corporation has reduced its earnings per share by 1.2% a year over the last three years. It saw its revenue drop 9.2% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has NVE Corporation Been A Good Investment?

Boasting a total shareholder return of 40% over three years, NVE 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.

In Summary...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for NVE that investors should think about before committing capital to this stock.

Switching gears from NVE, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.