What Can We Conclude About Intevac's (NASDAQ:IVAC) CEO Pay?

This article will reflect on the compensation paid to Wendell Blonigan who has served as CEO of Intevac, Inc. (NASDAQ:IVAC) since 2013. This analysis will also assess whether Intevac pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Intevac

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

According to our data, Intevac, Inc. has a market capitalization of US$180m, and paid its CEO total annual compensation worth US$1.2m over the year to December 2019. That's a notable increase of 26% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$548k.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$459k. This suggests that Wendell Blonigan is paid more than the median for the industry. What's more, Wendell Blonigan holds US$1.5m worth of shares in the company in their own name.

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. Intevac is paying a higher share of its remuneration through a salary in comparison to the overall 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 last three years, Intevac, Inc. has shrunk its earnings per share by 13% per year. Revenue was pretty flat on last year.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

Intevac, Inc. has not done too badly by shareholders, with a total return of 7.6%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we touched on above, Intevac, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS has not been growing sufficiently to impress us, over the last three years. And while shareholder returns have been respectable, they have hardly been superb. So you may want to delve deeper, because we don't think the amount Wendell makes is justifiable.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Intevac that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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