In 2014 Mark Jagiela was appointed CEO of Teradyne, Inc. (NASDAQ:TER). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
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How Does Mark Jagiela’s Compensation Compare With Similar Sized Companies?
Our data indicates that Teradyne, Inc. is worth US$7.5b, and total annual CEO compensation is US$7.2m. (This is based on the year to December 2018). That’s less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$905k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m.
So Mark Jagiela receives a similar amount to the median CEO pay, amongst 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 a visual representation of the CEO compensation at Teradyne, below.
Is Teradyne, Inc. Growing?
Over the last three years Teradyne, Inc. has grown its earnings per share (EPS) by an average of 63% per year (using a line of best fit). In the last year, its revenue is down -2.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Teradyne, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Teradyne, Inc. for providing a total return of 132% over three years. 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.
Remuneration for Mark Jagiela is close enough to the median pay for a CEO of a similar sized company .
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! Shareholders may want to check for free if Teradyne insiders are buying or selling shares.
Important note: Teradyne may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.