Key Insights

• TTM Technologies will host its Annual General Meeting on 8th of May
• Salary of US$852.0k is part of CEO Tom Edman's total remuneration
• Total compensation is 45% below industry average
• TTM Technologies' total shareholder return over the past three years was 11% while its EPS was down 19% over the past three years

The performance at TTM Technologies, Inc. (NASDAQ:TTMI) has been rather lacklustre of late and shareholders may be wondering what CEO Tom Edman is planning to do about this. At the next AGM coming up on 8th of May, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

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

Our data indicates that TTM Technologies, Inc. has a market capitalization of US$1.5b, and total annual CEO compensation was reported as US$3.1m for the year to January 2024. We note that's a decrease of 22% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$852k.

On examining similar-sized companies in the American Electronic 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$5.7m. In other words, TTM Technologies pays its CEO lower than the industry median. Moreover, Tom Edman also holds US$11m worth of TTM Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 32% of total compensation represents salary and 68% is other remuneration. In TTM Technologies' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at TTM Technologies, Inc.'s Growth Numbers

TTM Technologies, Inc. has reduced its earnings per share by 19% a year over the last three years. In the last year, its revenue is down 8.2%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. 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 TTM Technologies, Inc. Been A Good Investment?

TTM Technologies, Inc. has served shareholders reasonably well, with a total return of 11% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

Whatever your view on compensation, you might want to check if insiders are buying or selling TTM Technologies shares (free trial).

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.