Here's Why Shareholders May Consider Paying TTM Technologies, Inc.'s (NASDAQ:TTMI) CEO A Little More

Key Insights

• TTM Technologies to hold its Annual General Meeting on 8th of May
• CEO Tom Edman's total compensation includes salary of US$907.5k
• Total compensation is 38% below industry average
• TTM Technologies' total shareholder return over the past three years was 38% while its EPS grew by 2.7% over the past three years

Shareholders will probably not be disappointed by the robust results at TTM Technologies, Inc. (NASDAQ:TTMI) recently and they will be keeping this in mind as they go into the AGM on 8th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for TTM Technologies

How Does Total Compensation For Tom Edman Compare With Other Companies In The Industry?

According to our data, TTM Technologies, Inc. has a market capitalization of US$2.1b, and paid its CEO total annual compensation worth US$4.0m over the year to December 2024. We note that's an increase of 29% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$908k.

In comparison with other companies in the American Electronic industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$6.5m. Accordingly, TTM Technologies pays its CEO under the industry median. Furthermore, Tom Edman directly owns US$15m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. There isn't a significant difference between TTM Technologies and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

TTM Technologies, Inc.'s Growth

Over the past three years, TTM Technologies, Inc. has seen its earnings per share (EPS) grow by 2.7% per year. Its revenue is up 9.4% over the last year.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has TTM Technologies, Inc. Been A Good Investment?

Boasting a total shareholder return of 38% over three years, TTM Technologies, Inc. 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...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for TTM Technologies 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.