Yahoo Finance How Should Investors Feel About Amkor Technology, Inc.'s (NASDAQ:AMKR) CEO Pay?
In 2013 Steve Kelley was appointed CEO of Amkor Technology, Inc. (NASDAQ:AMKR). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Amkor Technology
How Does Steve Kelley's Compensation Compare With Similar Sized Companies?
According to our data, Amkor Technology, Inc. has a market capitalization of US$3.2b, and paid its CEO total annual compensation worth US$3.9m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$859k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
That means Steve Kelley receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Amkor Technology has changed from year to year.
Is Amkor Technology, Inc. Growing?
On average over the last three years, Amkor Technology, Inc. has shrunk earnings per share by 19% each year (measured with a line of best fit). Its revenue is down 9.8% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Amkor Technology, Inc. Been A Good Investment?
Amkor Technology, Inc. has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Steve Kelley is paid around the same as most CEOs of similar size companies.
The company isn't growing earnings per share, and nor have the total returns inspired us. We wouldn't say the CEO pay is too high, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. So you may want to check if insiders are buying Amkor Technology shares with their own money (free access).
If you want to buy a stock that is better than Amkor Technology, this free list of high return, low debt companies is a great place to look.
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.
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