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Rick Wallace has been the CEO of KLA-Tencor Corporation (NASDAQ: KLAC) since 2006.
This report will first review CEO compensation levels relative to those of other large companies.
After that, we will look at the growth of the company.
Finally, as a second measure of performance, we will look at shareholder returns in recent years.
This method should give us information to badess how well the company pays the CEO.
Discover our latest badyzes for KLA-Tencor
How does Rick Wallace's pay compare to similarly sized companies?
Our data indicates that KLA-Tencor Corporation is worth US $ 20 billion and that the total annual compensation of the CEO is US $ 12 million.
(This is based on the year until June 2018).
We believe that total compensation is higher, but we note that the CEO's salary is lower at 900,000 USD.
When we examined a group of companies with market capitalizations greater than US $ 8.0 billion, we found that their median total compensation for the CEO was US $ 11 million.
Once you start looking at very large companies, you have to choose a wider range because they are simply not numerous.
Rick Wallace is paid about the average of the companies we examined.
This fact alone does not tell us much, it becomes more relevant when compared to the performance of the company.
You can see below how KLA-Tencor's executive compensation has evolved over time.
Is KLA-Tencor Corporation growing?
Over the past three years, KLA-Tencor Corporation has seen earnings per share (EPS) increase by an average of 18% per year (using a best fit line).
In the last year, his income has increased by 13%.
Overall, this is a positive result for shareholders, which shows that the company has improved in recent years.
It's really positive to see this type of growth in one year. This suggests a healthy and growing business.
Shareholders may be interested in this free visualization of badyst forecasts.
Was KLA-Tencor Corporation a good investment?
I think the total shareholder return of 77%, over three years, would leave a smile for most shareholders of KLA-Tencor Corporation.
This strong performance could mean that some shareholders are not worried if the CEO should be paid more than normal for a company of this size.
In summary…
Rick Wallace is paid about the same salary as most CEOs of large companies.
Few would criticize leaders because the returns have been juicy and earnings per share are going in the right direction.
Indeed, many might consider the salary rather modest, given the good performance of the company!
So you can check if insiders buy KLA-Tencor shares with their own money (free access).
Important note: KLA-Tencor is not perhaps the best stock to buy. You could find something better in this list of interesting companies with high ROE and low debt.
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
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