Does Agilent Technologies Inc’s (NYSE:A) CEO Salary Reflect Performance?
Mike McMullen has been the CEO of Agilent Technologies Inc (NYSE:A) since 2015. This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Agilent Technologies
How Does Mike McMullen’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Agilent Technologies Inc has a market cap of US$21b, and is paying total annual CEO compensation of US$10m. Notably, that’s an increase of 13% over the year before. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.
So Mike McMullen receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Agilent Technologies has changed from year to year.
Is Agilent Technologies Inc Growing?
Agilent Technologies Inc has reduced its earnings per share by an average of 4.1% a year, over the last three years. In the last year, its revenue is up 9.4%.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Agilent Technologies Inc Been A Good Investment?
Boasting a total shareholder return of 67% over three years, Agilent Technologies Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Mike McMullen is paid around the same as most CEOs of large companies.
We feel that earnings per share have been a bit disappointing, but it’s nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
