Key Insights
- Entegris to hold its Annual General Meeting on 23rd of April
- Total pay for CEO Bertrand Loy includes US$1.02m salary
- The overall pay is comparable to the industry average
- Entegris' three-year loss to shareholders was 37% while its EPS was down 14% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at Entegris, Inc. (NASDAQ:ENTG) recently. At the upcoming AGM on 23rd of April, 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. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Entegris
Comparing Entegris, Inc.'s CEO Compensation With The Industry
According to our data, Entegris, Inc. has a market capitalization of US$11b, and paid its CEO total annual compensation worth US$17m over the year to December 2024. That's a notable increase of 30% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.
For comparison, other companies in the American Semiconductor industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$22m. So it looks like Entegris compensates Bertrand Loy in line with the median for the industry. What's more, Bertrand Loy 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 | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.0m | US$1.0m | 6% |
| Other | US$16m | US$12m | 94% |
| Total Compensation | US$17m | US$13m | 100% |
On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. It's interesting to note that Entegris allocates a smaller portion of compensation to salary 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 Entegris, Inc.'s Growth Numbers
Over the last three years, Entegris, Inc. has shrunk its earnings per share by 14% per year. It saw its revenue drop 8.0% over the last year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Entegris, Inc. Been A Good Investment?
With a total shareholder return of -37% over three years, Entegris, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Entegris that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.