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Is Entegris, Inc.'s (NASDAQ:ENTG) CEO Pay Fair?

Bertrand Loy became the CEO of Entegris, Inc. (NASDAQ:ENTG) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Entegris

How Does Bertrand Loy's Compensation Compare With Similar Sized Companies?

Our data indicates that Entegris, Inc. is worth US$6.7b, and total annual CEO compensation was reported as US$4.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$845k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.6m.

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That means Bertrand Loy receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Entegris has changed over time.

NasdaqGS:ENTG CEO Compensation, December 15th 2019
NasdaqGS:ENTG CEO Compensation, December 15th 2019

Is Entegris, Inc. Growing?

On average over the last three years, Entegris, Inc. has grown earnings per share (EPS) by 42% each year (using a line of best fit). In the last year, its revenue is up 4.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Entegris, Inc. Been A Good Investment?

Boasting a total shareholder return of 183% over three years, Entegris, 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.

In Summary...

Remuneration for Bertrand Loy is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Entegris shares with their own money (free access).

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.