It Looks Like Shareholders Would Probably Approve Benchmark Electronics, Inc.'s (NYSE:BHE) CEO Compensation Package

Key Insights

• Benchmark Electronics to hold its Annual General Meeting on 14th of May
• CEO Jeff Benck's total compensation includes salary of US$1.00m
• The total compensation is similar to the average for the industry
• Benchmark Electronics' EPS grew by 10% over the past three years while total shareholder return over the past three years was 51%

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We have been pretty impressed with the performance at Benchmark Electronics, Inc. (NYSE:BHE) recently and CEO Jeff Benck deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 14th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Benchmark Electronics

How Does Total Compensation For Jeff Benck Compare With Other Companies In The Industry?

Our data indicates that Benchmark Electronics, Inc. has a market capitalization of US$1.2b, and total annual CEO compensation was reported as US$6.5m for the year to December 2024. We note that's an increase of 12% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

In comparison with other companies in the American Electronic industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$6.5m. From this we gather that Jeff Benck is paid around the median for CEOs in the industry. Moreover, Jeff Benck also holds US$9.8m worth of Benchmark Electronics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$973k	15%
Other	US$5.5m	US$4.9m	85%
Total Compensation	US$6.5m	US$5.8m	100%

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. In Benchmark Electronics' 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.

Benchmark Electronics, Inc.'s Growth

Benchmark Electronics, Inc.'s earnings per share (EPS) grew 10% per year over the last three years. It saw its revenue drop 7.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Benchmark Electronics, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Benchmark Electronics, Inc. for providing a total return of 51% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Benchmark Electronics.

Important note: Benchmark Electronics 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.