Yahoo Finance What Did II-VI Incorporated's (NASDAQ:IIVI) CEO Take Home Last Year?
Chuck Mattera became the CEO of II-VI Incorporated (NASDAQ:IIVI) in 2016. 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.
Check out our latest analysis for II-VI
How Does Chuck Mattera's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that II-VI Incorporated has a market cap of US$2.1b, and reported total annual CEO compensation of US$5.4m for the year to June 2018. While we always look at total compensation first, we note that the salary component is less, at US$686k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
It would therefore appear that II-VI Incorporated pays Chuck Mattera more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at II-VI has changed from year to year.
Is II-VI Incorporated Growing?
II-VI Incorporated has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). It achieved revenue growth of 18% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has II-VI Incorporated Been A Good Investment?
II-VI Incorporated has generated a total shareholder return of 30% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared the total CEO remuneration paid by II-VI Incorporated, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling II-VI (free visualization of insider trades).
Important note: II-VI may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
