Applied Materials and its Executive Compensation Patterns

Applied Materials, Inc., a prominent player in the semiconductor industry, has been making headlines recently for both its financial performance and its executive compensation structures. In detail, let's examine the compensation packages of some key executives and how these reflect both personal performance and the company's broader financial outcomes.


In 2024, Brice Hill, serving as the Senior Vice President, Chief Financial Officer, and Global Information Services, received a total compensation of approximately $7.8 million1. This package was primarily composed of a salary of $744,616, stock awards valued at $5.85 million, and incentive plan compensation of approximately $1.15 million. Notably, Hill did not receive any bonuses or option awards, emphasizing the company’s preference for stock-related compensation to ensure alignment of executive interests with long-term shareholder value.

Contrast this with the 2022 compensation figures for Prabu G. Raja, then the President of the Semiconductor Products Group, who earned around $6.89 million2. Like Hill, a significant portion of Raja's remuneration was derived from stock awards, totaling over $5.37 million, with a base salary of $679,615 and performance incentives contributing around $819,791. This approach not only ties executive pay to company performance but also reflects the industry's overall trend where stock performance can greatly impact total compensation3.

Earlier data from 2021 captures a very different picture with total compensation for executives like Gary E. Dickerson and Robert J. Halliday significantly lower, with Dickerson, then President and CEO, earning about $678,2164. This suggests a company strategy where compensation must reflect contemporaneous business outcomes, perhaps as a response to business targets not being met.

The context in which these compensation strategies operate include a robust but recently challenged financial performance. The first quarter results of 2025 reveal a revenue increase of 7% year-over-year, reaching $7.17 billion, although earnings per share under Generally Accepted Accounting Principles (GAAP) were down by 40%5. This dichotomy of better revenue but pressured earnings highlights the broader market conditions and internal challenges affecting Applied Materials, as seen in market responses to the weak revenue guidance attributed to trade tensions6.

Consequently, executive compensation strategies at Applied Materials appear directly influenced by these market and financial conditions. The prominence of stock awards and incentive planning in executive pay indicates an effort to align compensation with both individual performance and broader company success. Moreover, these elements underscore the management’s focused approach toward shareholder value amidst turbulent market conditions.

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1. SEC Filing by Applied Materials, 2025 - https://www.sec.gov/Archives/edgar/data/6951/000119312525010409/0001193125-25-010409-index.htm
2. SEC Filing by Applied Materials, 2024 - https://www.sec.gov/Archives/edgar/data/6951/000119312524014287/0001193125-24-014287-index.htm
3. Applied Materials Q1 2025 Earnings Call Transcript - https://seekingalpha.com/article/4758260-applied-materials-inc-amat-q1-2025-earnings-call-transcript
4. SEC Filing by Applied Materials, 2022 - https://www.sec.gov/Archives/edgar/data/6951/000119312522018340/0001193125-22-018340-index.htm
5. Applied Materials Announces First Quarter 2025 Results - https://www.sec.gov/Archives/edgar/data/6951/000119312525010409/0001193125-25-010409-index.htm
6. Why Applied Materials Stock Pulled Back on Friday - https://www.fool.com/investing/2025/02/14/why-applied-materials-stock-pulled-back-on-friday/