It Looks Like Shareholders Would Probably Approve Photronics, Inc.'s (NASDAQ:PLAB) CEO Compensation Package

It would be hard to discount the role that CEO Peter Kirlin has played in delivering the impressive results at Photronics, Inc. (NASDAQ:PLAB) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 10 March 2022. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Photronics

How Does Total Compensation For Peter Kirlin Compare With Other Companies In The Industry?

At the time of writing, our data shows that Photronics, Inc. has a market capitalization of US$1.1b, and reported total annual CEO compensation of US$2.0m for the year to October 2021. We note that's a small decrease of 4.6% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$641k.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.4m. This suggests that Photronics remunerates its CEO largely in line with the industry average. Moreover, Peter Kirlin also holds US$8.5m worth of Photronics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	US$641k	US$628k	32%
Other	US$1.4m	US$1.5m	68%
Total Compensation	US$2.0m	US$2.1m	100%

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Photronics pays out 32% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Photronics, Inc.'s Growth

Over the past three years, Photronics, Inc. has seen its earnings per share (EPS) grow by 24% per year. In the last year, its revenue is up 17%.

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 revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Photronics, Inc. Been A Good Investment?

We think that the total shareholder return of 94%, over three years, would leave most Photronics, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Photronics that you should be aware of before investing.

Important note: Photronics 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.