As Broadcom Inc. (AVGO) stock builds to an all-time high, the eye-popping salary of its chief executive is courting less controversy.
Shares of the chip stock have climbed to just shy of $300 at their daily highs on Friday, soaring past the previous all-time high at just under $287 reached Feb. 20. The new heights reflect an approximately 100% return since the merger of Avago and Broadcom, and an annualized return approaching 40% over the past five years.
Jefferies analyst Mark Lipacis stated his belief that, alongside Nvidia Corp. (NVDA) CEO Jensen Huang, Tan is one of the best CEOs in the business, based not only on the track record, but the company's positioning for the road ahead as well.
"We can't help but observe that two of the most successful semi CEOs are both assembling complete semi and software solutions to target the HPC/DC market - we don't think AVGO's P/E reflects the power of this strategy," Jefferies' Lipacis commented. "Both companies are positioning for the high performance computing and data center markets with complete solutions - we don't believe the power of this strategy is fully appreciated by the Street."
The recognition is a significant contrast to the title of America's third "most overpaid CEO" in America from nonprofit corporate action foundation As You Sow.
For a look at some of America's highest paid CEOs and their three-year annualized returns, have a look at the charts below: