Key Insights

• Lattice Semiconductor to hold its Annual General Meeting on 3rd of May
• Salary of US$711.5k is part of CEO Jim Anderson's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Lattice Semiconductor's EPS grew by 75% and over the past three years, the total shareholder return was 47%

It would be hard to discount the role that CEO Jim Anderson has played in delivering the impressive results at Lattice Semiconductor Corporation (NASDAQ:LSCC) recently. Coming up to the next AGM on 3rd of May, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Comparing Lattice Semiconductor Corporation's CEO Compensation With The Industry

Our data indicates that Lattice Semiconductor Corporation has a market capitalization of US$10b, and total annual CEO compensation was reported as US$14m for the year to December 2023. That's a notable increase of 23% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$712k.

For comparison, other companies in the American Semiconductor industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$19m. So it looks like Lattice Semiconductor compensates Jim Anderson in line with the median for the industry. What's more, Jim Anderson holds US$69m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Lattice Semiconductor paid Jim Anderson a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Lattice Semiconductor Corporation's Growth

Over the past three years, Lattice Semiconductor Corporation has seen its earnings per share (EPS) grow by 75% per year. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Lattice Semiconductor Corporation Been A Good Investment?

We think that the total shareholder return of 47%, over three years, would leave most Lattice Semiconductor Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Lattice Semiconductor primarily uses non-salary benefits to reward its CEO. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. 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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is significant) in Lattice Semiconductor we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.