Sunday, January 12, 2020

San Jose, California-Based Sanmina Corp's Top-Tier Executives Average Annual Pay and Employee Benefits Increase Was a Blistering 20.6% Per Year During the Past Five Years

I have researched and made posts related to Top-Tier Executive Total Compensation in most of the largest companies headquartered in the four earliest 2020 Democratic Primary States ..... Iowa, New Hampshire, Nevada and South Carolina.

Also of the 14 Super Tuesday US States holding their 2020 Democratic Presidential Primaries on March 3, 2020, I made like posts related to most of the largest Texas Companies, most of the largest North Carolina Companies, most of the largest Minnesota Companies, most of the largest Massachusetts Companies, most of the largest Southern California companies and most of the largest technology companies headquartered in the San Francisco/Silicon Valley, California area.  Thus I now will complete California Companies by covering most of the largest Non-Technology Companies in the San Francisco/Silicon Valley, California area. 

My research has shown that Elizabeth Warren, Bernie Sanders and Tom Steyer are all spot on when they assert that US Corporate Financial Corruption is rampant.  But the problem is that none of the three have any clue on precisely the cause or how to effectively fix this huge problem which is also the primary cause of the huge, continuing US income inequality expansion which has been occurring for decades.  They don't understand precisely the mechanics of how large US Corps have expanded income inequality so dramatically in each year for decades.  You can't fix something you don't sufficiently understand.  It's insufficient to just grouchily complain about it all of the time without offering effective solutions. 

There is only one Democratic Presidential candidate who has both the requisite financial acumen and economic fairness to turn the tide on this massive, continuing US income inequality expansion ..... Pete Buttigieg.  

Frankly, Joe Biden is devoid of financial acumen.  Biden is a very nice man, but he is so naive on economic issues that he isn't even aware of the extent of this continuing huge US income inequality expansion or precisely its cause which has been occurring under his nose for the past forty plus years.

Nor is Biden aware of, or else has decided to ignore, just how huge the largest US tax shelters are which are located right under his nose in his home State of Delaware, mostly in one Wilmington, Delaware building.  These Delaware tax shelters have substantially added to US income inequality each year.

Amy Klobuchar has very little financial acumen.  Similar to the way Republicans think, Amy successfully pushed strongly for tax breaks for the many Medical Companies in Minnesota but that has substantially expanded income inequality with no trickle down economic benefit to the middle and lower economic classes. 

Also on the very negative side, both Joe Biden and Amy Klobuchar voted for many years for the Annual Income Tax Loophole Extenders which dramatically increased US income inequality expansion each year.  On the positive side, voting for many years against these same Annual Income Tax Loophole Extenders were Elizabeth Warren and Bernie Sanders.

If you want four more years of huge US income inequality expansion like we have had in the past forty years, then Joe Biden is your man.

I think Joe Biden would have a very difficult time beating Donald Trump.  With his advanced age, Biden has a very low energy level, whereas Trump, with his unbelievably high energy level, reminds me of the energizer bunny.  US citizens want an energetic US President.  

Bernie Sanders and Elizabeth Warren are still both saddled with their pure Medicare For All position, which is highly unpopular to US voters at large.  If either of them won the 2020 Democratic Presidential Primary, they would stand little chance of beating Donald Trump in the 2020 Presidential general election.  Warren, with her consistently likable charismatic positive posture, would stand a much better chance of beating Trump than Bernie would, who now at his advanced age comes across as a grumpy old white guy.

So far in my research of large US Corps I have shown that their Top-Tier Executives have been rewarded continually with just enormous annual percentage increases in pay and employee benefits, mostly stock equity compensation, to the extent that the key issue to US citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

While increasing the US federal minimum wage will help here, this would be just a mere drop in the bucket as compared to the fact that the annual percentage increase in the pay and employee benefits of Company non-executive employees are minuscule in relation to that of Company executive employees and this has been going on for decades.  When Corporate CEOs and CFOs primarily view non-executive employees as Costs rather than as People, this is what happens.  And neither political party has had the courage to take on US Corps here.

But this huge pay inequality problem also exists widely in the non-profit sector including in non-profit hospitals.  And it also exists widely in state and local governments, especially in public education.

So now I will be addressing Top-Tier Executive Compensation for five to ten years in some of the largest Non-Technology Companies in the San Francisco/Silicon Valley area of California.  

I will be doing this research mostly by stock market capitalization and thus the 39th Northern California Company that I am addressing here is Sanmina Corp.

From annual compensation information contained in Proxy Statement filings with the US SEC, the chart at the very bottom below shows Sanmina Corp's Top-Tier Executives Annual Total Compensation for each of the two consecutive full years of employment for the past five years.

Sanmina Corp's Top-Tier Executives Average Annual Pay and Employee Benefits Increase was a blistering 20.6% per year during the past five years, which is the 23rd highest of the 39 large Northern California Non-Technology Companies I have addressed so far.
  1. Tesla +153,474% per year for the past five years
  2. Global Blood Therapeutics +158.6% per year for the past three years
  3. MyoKardia +100.1% per year for the past four years
  4. FibroGen +69.4% per year for the past five years 
  5. Nektar Therapeutics +61.6% per year for the past five years
  6. Penumbra Inc +57.8% per year for the past four years
  7. Lumentum Holdings Inc +51.6% per year for the past four years
  8. California Water Service Group +50.2% per year for the past five years
  9. Nevro Corp +38.4% per year for the past five years
  10. Jazz Pharmaceuticals +37.5% per year for the past ten years
  11. Align Technology +36.2% per year for the past five years
  12. Williams-Sonoma +35.5% per year for the past ten years
  13. The Gap Inc +28.7% per year for the past five years
  14. Digital Realty Trust +28.4% per year for the past five years
  15. Keysight Technologies +26.2% per year for the past five years
  16. Prologis +25.1% per year for the past nine years 
  17. BioMarin Pharmaceutical +23.1% per year for the past ten years
  18. Cooper Companies +22.4% per year for the past ten years
  19. Varian Medical Systems +21.9% per year for the past ten years
  20. Exelixis Inc +21.6% per year for the past five years
  21. SVB Financial Group +21.2% per year for the past ten years
  22. Ross Stores +20.8% per year for the past ten years
  23. Sanmina Corp +20.6% per year for the past five years
  24. Essex Property Trust +19.5% per year for the past five years
  25. Wells Fargo +19.3% per year for the past ten years
  26. SYNNEX Corp +19.3% per year for the past five years
  27. Levi Strauss & Co +18.9% per year for the past ten years
  28. Equinix +18.6% per year for the past ten years
  29. Bio-Rad Laboratories +17.8% per year for the past five years
  30. First Republic Bank +17.8% per year for the past five years
  31. Intuitive Surgical +16.0% per year for the past five years
  32. Joint PG&E Corp and Its Utility Co +15.5% per year for the past five years
  33. Chevron +13.5% per year for the past ten years
  34. Franklin Resources +12.6% per year for the past ten years
  35. Agilent Technologies +12.0% per year for the past five years
  36. Gilead Sciences +11.3% per year for the past five years
  37. Clorox +11.2% per year for the past five years
  38. Trimble Inc +10.4% per year for the past ten years
  39. Charles Schwab Corp +8.5% per year for the past nine years
So who is causing these extremely high Top-Tier Executives annual pay percentages increases, which tend to be much higher than the Companies' actual annual financial performance?

And who is causing the annual minuscule raises for the company non-executive employees? 

Generally it works like this.

The Company's Board of Directors set the pay standards for the total compensation of the CEO for each year.   
  
Then the CEO establishes the pay standards for the Top-Tier Executives, which is reviewed by the Company's Board of Directors.  

And the CEO also usually approves the overall pay and employee benefits annual percentage increases for each of the other levels of the Company's employees.

So who is this huge, continuing Company pay and employee benefit income inequality "on"?

Clearly it's "on" the Company's CEO and the Company's Board of Directors.

It's simple math.  The lower the annual percentage raise for the Company's non-executive employees, the higher the Company's annual profits and thus also the higher the annual percentage raise for the Company's executives since their annual pay raise is tied to Company profits.

The end result is massive, continuing income inequality expansion.

And the only way it will be fixed is by wisely-designed US Government tax legislation, which gives companies very nice tax incentives for paying non-executive employees very well in a given year and which also requires companies to pay a luxury tax when executives are paid clearly too much in a given year or when non-executive employees are clearly paid too little in a given year.  In addition, it would be very helpful to dramatically increase the US Earned Income Tax Credit.

So, why hasn't it been fixed? 

Because more than half of the US Congress, including surprisingly more than a few Democrats, are effectively controlled by the US Corps or because the US President is controlled by the US Corps who are vigorously fighting to be at the top of the list of US Corps continuing to expand income inequality.

So how do you solve that problem?

Vote for US Senators, US House members and a US President who aren't controlled by the US Corps which view their non-executive employees and contract workers as Costs rather than as People ..... they all don't, but a clear majority of them do.


  FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept
Sanmina Corp 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
 Sola Executive Chairman        8,932     16,612     16,612     12,624     12,624     10,130     10,130       8,345       8,345       3,877
 Eulau Former CEO        6,507       4,888       4,888       3,481       3,481       3,380       3,380       2,157
 Fay   N/A   N/A 
 Reid           691          936          936          961          961          753          753          798          798          681
 Young        1,051       1,119       1,119          918          918       1,087       1,087          996
 Kostalnick Former EVP   N/A   N/A        1,231          682  N/A   N/A 
 Totals        9,623     17,548     25,106     19,592     19,592     15,282     16,513     14,292     13,610       7,711
Annual % Change vs Prior Year -45.2% 28.1% 28.2% 15.5% 76.5%
5 Year Average Per Year % Change 20.6%


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