Plexus Corp.'s (NASDAQ:PLXS) CEO Compensation Is Looking A Bit Stretched At The Moment

CEO Todd Kelsey has done a decent job of delivering relatively good performance at Plexus Corp. (NASDAQ:PLXS) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16 February 2022. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Plexus

How Does Total Compensation For Todd Kelsey Compare With Other Companies In The Industry?

Our data indicates that Plexus Corp. has a market capitalization of US$2.3b, and total annual CEO compensation was reported as US$7.6m for the year to October 2021. That's a slight decrease of 7.1% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$3.6m. This suggests that Todd Kelsey is paid more than the median for the industry. What's more, Todd Kelsey holds US$13m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	US$1.0m	US$1.0m	13%
Other	US$6.6m	US$7.2m	87%
Total Compensation	US$7.6m	US$8.2m	100%

On an industry level, around 29% of total compensation represents salary and 71% is other remuneration. Plexus pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Plexus Corp.'s Growth Numbers

Over the past three years, Plexus Corp. has seen its earnings per share (EPS) grow by 2.9% per year. In the last year, its revenue changed by just 0.4%.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Plexus Corp. Been A Good Investment?

We think that the total shareholder return of 39%, over three years, would leave most Plexus Corp. shareholders smiling. 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.

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.

Shareholders may want to check for free if Plexus insiders are buying or selling shares.

Important note: Plexus 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.