Keith Jackson has been the CEO of ON Semiconductor Corporation (NASDAQ:ON) since 2002. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Keith Jackson's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that ON Semiconductor Corporation has a market cap of US$7.3b, and is paying total annual CEO compensation of US$12m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.8m.
Thus we can conclude that Keith Jackson receives more in total compensation than the median of a group of companies in the same market, and of similar size to ON Semiconductor Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at ON Semiconductor has changed over time.
Is ON Semiconductor Corporation Growing?
ON Semiconductor Corporation has increased its earnings per share (EPS) by an average of 44% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.2%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has ON Semiconductor Corporation Been A Good Investment?
Boasting a total shareholder return of 64% over three years, ON Semiconductor 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.
We compared total CEO remuneration at ON Semiconductor Corporation with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling ON Semiconductor shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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