We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Veeco Instruments Inc.'s (NASDAQ:VECO) CEO For Now

Key Insights

• Veeco Instruments' Annual General Meeting to take place on 8th of May
• Total pay for CEO Bill Miller includes US$660.1k salary
• Total compensation is 60% above industry average
• Over the past three years, Veeco Instruments' EPS grew by 34% and over the past three years, the total loss to shareholders 24%

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The underwhelming share price performance of Veeco Instruments Inc. (NASDAQ:VECO) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 8th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Veeco Instruments

Comparing Veeco Instruments Inc.'s CEO Compensation With The Industry

According to our data, Veeco Instruments Inc. has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$6.9m over the year to December 2024. Notably, that's an increase of 49% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$660k.

For comparison, other companies in the American Semiconductor industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$4.3m. Hence, we can conclude that Bill Miller is remunerated higher than the industry median. Furthermore, Bill Miller directly owns US$9.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$660k	US$633k	10%
Other	US$6.2m	US$4.0m	90%
Total Compensation	US$6.9m	US$4.6m	100%

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. In Veeco Instruments' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Veeco Instruments Inc.'s Growth

Veeco Instruments Inc.'s earnings per share (EPS) grew 34% per year over the last three years. Its revenue is up 7.6% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Veeco Instruments Inc. Been A Good Investment?

Since shareholders would have lost about 24% over three years, some Veeco Instruments Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Veeco Instruments we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.