Teradyne management check
TER · Information Technology · Semiconductor Materials & Equipment · CEO Gregory S. Smith
Filings as of
3 good · 3 to watch · 1 flagged, across the seven questions below.
- Flag
Have owners done well?
Trailed its chosen peers$100 invested at the start of fiscal 2021 grew to $165, against $259 for the peer group the company picked itself.
- Good
Does pay follow performance?
Pay rose and fell with returnsOver 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.66 with shareholder return. 1 means pay moved in step; below 0, the opposite way.
- Watch
What does the CEO cost owners?
2.5% of net income$14.1m of reported pay in fiscal 2025, against $554.0m of net income.
- Watch
Do they own the stock?
CEO stake ≈ 2.5 years of payThe CEO holds 104,495.408 shares, directly or through trusts (unvested awards not counted): about 2.5 years of pay. Light activity: no buys, $14.3m sold in six months. 23 of 23 sales ran on pre-arranged 10b5-1 plans.
- Good
Are owners being diluted?
Share count shrinkingDiluted shares changed -1.4% a year over the last three fiscal years. Stock-based pay was 2.0% of revenue in the latest year.
- Watch
Is leadership stable?
2 CEOs in the pay tableCEOs in the pay table: Mark E. Jagiela, Gregory S. Smith. 10 filings under 8-K item 5.02 (officers or directors leaving or joining, or new pay arrangements) in the last 3 years.
- Good
Are the books clean?
No red flags on fileNo restatements, auditor changes or late filings since 2021.
Against the S&P 500
Each check's score (0–100) and how it compares: the share of ranked S&P 500 companies it matches or beats, and the median in Information Technology.
| Check | Score | At or above | Sector median |
|---|---|---|---|
| Owner returns | 5 | 33 | |
| Pay for performance | 83 | 87 | |
| CEO cost | 16 | 35 | |
| Skin in the game | 55 | 47 | |
| Dilution | 68 | 56 | |
| Stable leadership | 35 | 85 | |
| Clean books | 100 | 100 |
Closest peers
Others in Semiconductor Materials & Equipment, by management score. Teradyne is 59th of 73 in its sector.
- 27AMATApplied Materials85
- 35KLACKLA Corporation83
- 81LRCXLam Research78
- 410CTSHCognizant52
- 412TERTeradyne52
- 450QQnity Electronics46
Pay versus performance
From the proxy statement filed March 27, 2026. "Actually paid" values stock awards at the share price, so it rises and falls with the stock.
| Fiscal year | CEO | CEO pay | Actually paid | Other executives (avg) | $100 became | Peers | Net income |
|---|---|---|---|---|---|---|---|
| 2025 | Gregory S. Smith | $14.1m | $41.1m | $4.9m | $165 | $259 | $554.0m |
| 2024 | — | $11.8m | $17.1m | $2.9m | $189 | $247 | $542.4m |
| 2023 | Mark E. Jagiela | $10.1m | $10.5m | $3.2m | $162 | $257 | $448.8m |
| 2022 | — | $10.6m | $0 | $2.7m | $130 | $161 | $715.5m |
| 2021 | — | $11.0m | $37.5m | $2.5m | $242 | $246 | $1.0bn |
The board says pay is tied most to PBIT. Its other key measures: Annual PBIT (component of NEO variable compensation), Two-year rolling revenue growth rate (component of NEO variable compensation), Three-year cumulative PBIT (component of NEO performance-based RSU awards), Three-year TSR (component of NEO performance-based RSU awards).
Insiders and the CEO's stake
Gregory Stephen Smith (President and CEO) held 104,495.408 shares directly after their latest Form 4 on Oct 15, 2026, roughly $35.7m at that filing's price.
Light activity: no buys, $14.3m sold in six months. 23 of 23 sales ran on pre-arranged 10b5-1 plans.
- SoldGregory Stephen SmithPresident and CEO · 10b5-1 plan$10.4mOct 15, 2026
- SoldMarilyn MatzDirector · 10b5-1 plan$2.7mOct 21, 2026
- SoldShannon John PoulinPresident, Semiconductor Test · 10b5-1 plan$581kMay 22, 2026
- SoldMercedes JohnsonDirector · 10b5-1 plan$322kOct 1, 2026
Leadership and governance on file
- Oct 28, 2025Leadership change8-K 5.02
- Sep 2, 2025Leadership change8-K 5.02
- Jun 26, 2025Leadership change8-K 5.02
- May 12, 2025Leadership change8-K/A 5.02
- May 12, 2025Leadership change8-K 5.02
- Mar 6, 2025Leadership change8-K 5.02
- Jan 8, 2025Leadership change8-K 5.02
- Jan 29, 2024Leadership change8-K/A 5.02
- Jan 12, 2024Leadership change8-K 5.02
- Nov 15, 2023Leadership change8-K 5.02
- Feb 3, 2023Leadership change8-K 5.02
- Nov 16, 2022Leadership change8-K 5.02
Latest shareholder vote results: May 11, 2026, including the say-on-pay vote.
Where the money went
Over 2021–2025: $3.0bn returned to owners in buybacks and dividends, 92% of net income, and $275.7m of pay in stock.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.7bn | $3.2bn | $2.7bn | $2.8bn | $3.2bn |
| Net income | $1.0bn | $715.5m | $448.8m | $542.4m | $554.0m |
| Stock-based pay | $45.6m | $48.2m | $57.7m | $60.1m | $64.0m |
| Buybacks | $600.0m | $752.1m | $397.2m | $198.6m | $702.1m |
| Dividends | $66.0m | $69.7m | $67.9m | $76.4m | $76.3m |
| Diluted shares | 184m | 170m | 164m | 163m | 160m |
Educational only, not investment advice. Figures are as filed with the SEC: pay from the proxy's pay-versus-performance table, capital allocation from 10-K XBRL data, insider trades from Form 4s over the last six months, events from the last 5 years of filings. The peer group is the one the company chose. See the method.