Yahoo Finance It Looks Like Skyworks Solutions, Inc.'s (NASDAQ:SWKS) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Skyworks Solutions will host its Annual General Meeting on 14th of May
Total pay for CEO Liam Griffin includes US$1.17m salary
The overall pay is comparable to the industry average
Skyworks Solutions' EPS declined by 9.9% over the past three years while total shareholder loss over the past three years was 41%
Shareholders will probably not be too impressed with the underwhelming results at Skyworks Solutions, Inc. (NASDAQ:SWKS) recently. At the upcoming AGM on 14th of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
See our latest analysis for Skyworks Solutions
How Does Total Compensation For Liam Griffin Compare With Other Companies In The Industry?
According to our data, Skyworks Solutions, Inc. has a market capitalization of US$15b, and paid its CEO total annual compensation worth US$17m over the year to September 2023. That's just a smallish increase of 3.6% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.
In comparison with other companies in the American Semiconductor industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$17m. This suggests that Skyworks Solutions remunerates its CEO largely in line with the industry average. What's more, Liam Griffin holds US$14m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.2m | US$1.1m | 7% |
Other | US$16m | US$16m | 93% |
Total Compensation | US$17m | US$17m | 100% |
Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. Skyworks Solutions sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Skyworks Solutions, Inc.'s Growth
Over the last three years, Skyworks Solutions, Inc. has shrunk its earnings per share by 9.9% per year. It saw its revenue drop 11% over the last year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Skyworks Solutions, Inc. Been A Good Investment?
Few Skyworks Solutions, Inc. shareholders would feel satisfied with the return of -41% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Skyworks Solutions.
Important note: Skyworks Solutions 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.
