Microchip Technology management check
MCHP · Information Technology · Semiconductors · CEO Steve Sanghi
Filings as of
2 good · 3 to watch · 2 flagged, across the seven questions below.
- Flag
Have owners done well?
Trailed its chosen peers$100 invested at the start of fiscal 2022 grew to $92, against $257 for the peer group the company picked itself.
- Watch
Does pay follow performance?
Pay only loosely tracked returnsOver 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of -0.09 with shareholder return. 1 means pay moved in step; below 0, the opposite way.
- Flag
What does the CEO cost owners?
17.6% of net income$40.5m of reported pay in fiscal 2026, against $230.0m of net income.
- Watch
Do they own the stock?
Insiders are selling5 insiders sold $15.2m in the last six months and none bought. 5 of 13 sales ran on pre-arranged 10b5-1 plans.
- Good
Are owners being diluted?
Share count shrinkingDiluted shares changed -0.3% a year over the last three fiscal years. Stock-based pay was 5.4% of revenue in the latest year.
- Watch
Is leadership stable?
2 CEOs in the pay tableCEOs in the pay table: Ganesh Moorthy, Steve Sanghi. 12 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 | 0 | 33 | |
| Pay for performance | 46 | 87 | |
| CEO cost | 0 | 35 | |
| Skin in the game | — | — | 47 |
| Dilution | 53 | 56 | |
| Stable leadership | 25 | 85 | |
| Clean books | 100 | 100 |
Closest peers
Others in Semiconductors, by management score. Microchip Technology is 70th of 73 in its sector.
- 20NVDANvidia86
- 101ONON Semiconductor76
- 112AVGOBroadcom75
- 117MUMicron Technology75
- 132FSLRFirst Solar73
- 235MRVLMarvell Technology66
- 236QCOMQualcomm65
- 314ADIAnalog Devices60
- 319MPWRMonolithic Power Systems60
- 373TXNTexas Instruments56
Pay versus performance
From the proxy statement filed July 6, 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 |
|---|---|---|---|---|---|---|---|
| 2026 | Steve Sanghi | $40.5m | $47.2m | $2.6m | $92 | $257 | $230.0m |
| 2025 | Steve Sanghi | $21.4m | $9.6m | $2.0m | $67 | $143 | −$500k |
| 2024 | Ganesh Moorthy | $9.9m | $9.0m | $2.8m | $122 | $163 | $1.9bn |
| 2023 | Ganesh Moorthy | $12.3m | $18.1m | $4.5m | $111 | $106 | $2.2bn |
| 2022 | Ganesh Moorthy | $12.8m | $9.9m | $3.9m | $98 | $111 | $1.3bn |
The board says pay is tied most to non-GAAP operating income. Its other key measures: Net Sales, Gross Profit Percentage (Non-GAAP), Operating Expenses (Non-GAAP), Operating Income (Non-GAAP), Diluted Net Income Per Common Share (Non-GAAP), Cash Flow from Operating Activities.
Insiders and the CEO's stake
5 insiders sold $15.2m in the last six months and none bought. 5 of 13 sales ran on pre-arranged 10b5-1 plans.
- SoldSteve SanghiPresident, CEO and Chair of Bd · 10b5-1 plan$10.3mMay 1, 2026
- SoldRichard J SimoncicCHIEF OPERATING OFFICER$1.9mJun 4, 2026
- SoldMatthew W ChapmanDirector$1.2mMay 28, 2026
- SoldMathew B BunkerSENIOR VP, OPERATIONS$1.0mMay 13, 2026
Leadership and governance on file
- Aug 19, 2026Leadership change8-K 5.02
- Jul 24, 2026Leadership change8-K 5.02
- Jun 1, 2026Leadership change8-K 5.02
- May 2, 2025Leadership change8-K 5.02
- Feb 24, 2025Leadership change8-K 5.02
- Feb 4, 2025Leadership change8-K 5.02
- Nov 20, 2024Leadership change8-K 5.02
- Aug 22, 2024Leadership change8-K 5.02
- Aug 1, 2024Leadership change8-K 5.02
- Apr 2, 2024Leadership change8-K 5.02
- Feb 5, 2024Leadership change8-K 5.02
- Jan 22, 2024Leadership change8-K 5.02
Latest shareholder vote results: Aug 19, 2026, including the say-on-pay vote.
Where the money went
Over 2021–2025: $5.3bn returned to owners in buybacks and dividends, 94% of net income, and $993.9m of pay in stock.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.8bn | $8.4bn | $7.6bn | $4.4bn | $4.7bn |
| Net income | $1.3bn | $2.2bn | $1.9bn | −$500k | $230.0m |
| Stock-based pay | $210.2m | $170.4m | $177.5m | $180.4m | $255.4m |
| Buybacks | $425.6m | $945.8m | $982.1m | $96.5m | $0 |
| Dividends | — | — | $911.5m | $975.7m | $984.0m |
| Diluted shares | 566m | 557m | 548m | 537m | 545m |
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.