Key Insights

• Veeco Instruments' Annual General Meeting to take place on 9th of May
• Total pay for CEO Bill Miller includes US$633.4k salary
• Total compensation is similar to the industry average
• Veeco Instruments' total shareholder return over the past three years was 60% while its EPS grew by 51% over the past three years

We have been pretty impressed with the performance at Veeco Instruments Inc. (NASDAQ:VECO) recently and CEO Bill Miller deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 9th of May. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Comparing Veeco Instruments Inc.'s CEO Compensation With The Industry

Our data indicates that Veeco Instruments Inc. has a market capitalization of US$1.9b, and total annual CEO compensation was reported as US$4.6m for the year to December 2023. Notably, that's a decrease of 22% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$633k.

On examining similar-sized companies in the American Semiconductor industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$5.4m. This suggests that Veeco Instruments remunerates its CEO largely in line with the industry average. Furthermore, Bill Miller directly owns US$19m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 11% of total compensation represents salary and 89% is other remuneration. According to our research, Veeco Instruments has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Veeco Instruments Inc.'s Growth Numbers

Veeco Instruments Inc. has seen its earnings per share (EPS) increase by 51% a year over the past three years. Its revenue is up 3.1% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Veeco Instruments Inc. Been A Good Investment?

We think that the total shareholder return of 60%, over three years, would leave most Veeco Instruments Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Veeco Instruments that investors should look into moving forward.

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.