We Think The Compensation For Viavi Solutions Inc.'s (NASDAQ:VIAV) CEO Looks About Right
Key Insights
- Viavi Solutions' Annual General Meeting to take place on 12th of November
- Total pay for CEO Oleg Khaykin includes US$900.0k salary
- Total compensation is similar to the industry average
- Over the past three years, Viavi Solutions' EPS fell by 47% and over the past three years, the total shareholder return was 57%
Performance at Viavi Solutions Inc. (NASDAQ:VIAV) has been reasonably good and CEO Oleg Khaykin has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 12th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Viavi Solutions
How Does Total Compensation For Oleg Khaykin Compare With Other Companies In The Industry?
At the time of writing, our data shows that Viavi Solutions Inc. has a market capitalization of US$3.9b, and reported total annual CEO compensation of US$11m for the year to June 2025. That's a notable increase of 27% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$900k.
In comparison with other companies in the American Communications industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$8.3m. So it looks like Viavi Solutions compensates Oleg Khaykin in line with the median for the industry. Moreover, Oleg Khaykin also holds US$39m worth of Viavi Solutions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | US$900k | US$900k | 8% |
| Other | US$9.7m | US$7.4m | 92% |
| Total Compensation | US$11m | US$8.3m | 100% |
On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. In Viavi Solutions' case, non-salary compensation represents a greater slice of total remuneration, in comparison 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 Viavi Solutions Inc.'s Growth Numbers
Over the last three years, Viavi Solutions Inc. has shrunk its earnings per share by 47% per year. Its revenue is up 16% over the last year.
The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Viavi Solutions Inc. Been A Good Investment?
Boasting a total shareholder return of 57% over three years, Viavi Solutions Inc. has done well by shareholders. 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...
Although the company has performed relatively well, we still think there are some areas that could be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Viavi Solutions that investors should think about before committing capital to this stock.
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. 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.