Broadcom Inc., in its most recent U.S. Securities And Exchange Commission filing, revealed that its President and CEO Hock Tan's pay for fiscal 2023 has more than doubled compared to the previous year.
In 2023, Tan received a total remuneration of $161.83 million, marking a significant rise from the $60.61 million he earned the year before. This increase is largely due to the $160.54 million worth of stock awards he received, which is a stark contrast to the $53.91 million he was given the previous year.
To incentivize and retain Tan, Broadcom's Board granted him performance stock unit awards in fiscal 2023. These awards are tied to demanding stock price performance targets and necessitate sustained service over a five-year vesting period.
Broadcom enjoyed a banner year in 2023, achieving historic highs in terms of revenue, operating income, and free cash flow. This was made possible by its growing presence in generative AI, the continued growth of its infrastructure software business, and the expansion of its semiconductor solutions business, even amid a cyclical downturn in the semiconductor industry.
Shareholders have recognized the executive team's exceptional work in increasing shareholder value. Since its IPO in 2009, through to fiscal 2023, the company has managed to boost its market capitalization from $3.8 billion to an impressive $346.0 billion.
Broadcom also mentioned that Tan's performance stock unit award for fiscal 2023 was front-loaded, covering the market-based value of his yearly cash and long-term incentive opportunities over a five-year span.
