Yahoo Finance Amphenol Corporation's (NYSE:APH) CEO Looks Like They Deserve Their Pay Packet
Key Insights
Amphenol will host its Annual General Meeting on 16th of May
CEO Richard Norwitt's total compensation includes salary of US$1.46m
The total compensation is similar to the average for the industry
Amphenol's EPS grew by 16% over the past three years while total shareholder return over the past three years was 101%
It would be hard to discount the role that CEO Richard Norwitt has played in delivering the impressive results at Amphenol Corporation (NYSE:APH) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 16th 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 Amphenol
Comparing Amphenol Corporation's CEO Compensation With The Industry
According to our data, Amphenol Corporation has a market capitalization of US$76b, and paid its CEO total annual compensation worth US$11m over the year to December 2023. We note that's a decrease of 22% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.
On comparing similar companies in the American Electronic industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$11m. From this we gather that Richard Norwitt is paid around the median for CEOs in the industry. What's more, Richard Norwitt holds US$183m 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$1.5m | US$1.4m | 13% |
Other | US$9.5m | US$13m | 87% |
Total Compensation | US$11m | US$14m | 100% |
Speaking on an industry level, nearly 31% of total compensation represents salary, while the remainder of 69% is other remuneration. In Amphenol's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Amphenol Corporation's Growth Numbers
Amphenol Corporation's earnings per share (EPS) grew 16% per year over the last three years. It achieved revenue growth of 1.5% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Amphenol Corporation Been A Good Investment?
Boasting a total shareholder return of 101% over three years, Amphenol Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
Shareholders may want to check for free if Amphenol insiders are buying or selling shares.
Switching gears from Amphenol, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
