Intevac, Inc.'s (NASDAQ:IVAC) CEO Compensation Is Looking A Bit Stretched At The Moment

Performance at Intevac, Inc. (NASDAQ:IVAC) has been reasonably good and CEO Wendell Blonigan has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 19 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Intevac

Comparing Intevac, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Intevac, Inc. has a market capitalization of US$133m, and reported total annual CEO compensation of US$1.7m for the year to January 2021. We note that's an increase of 38% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$587k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$975k. Hence, we can conclude that Wendell Blonigan is remunerated higher than the industry median. Furthermore, Wendell Blonigan directly owns US$1.1m worth of shares in the company.

Component	2021	2019	Proportion (2021)
Salary	US$587k	US$548k	34%
Other	US$1.1m	US$693k	66%
Total Compensation	US$1.7m	US$1.2m	100%

Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. It's interesting to note that Intevac pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Intevac, Inc.'s Growth

Over the past three years, Intevac, Inc. has seen its earnings per share (EPS) grow by 31% per year. Its revenue is down 7.8% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Intevac, Inc. Been A Good Investment?

With a total shareholder return of 18% over three years, Intevac, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Intevac that investors should be aware of in a dynamic business environment.

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. 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.
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