Fabrinet's CEO drew $13.6 million, 1,317 times its median worker, as the stock sits 57% off its high
Fabrinet's new proxy shows a sixth straight record year, a $13.6 million CEO pay package at 1,317 times median employee pay, and just $5.2 million of buybacks. Shareholders reading it are holding a stock 57% below its high, ahead of November 2 earnings and a December 10 say-on-pay vote.
Richard Tang · 2 min read
Fabrinet's−0.57% — Fabrinet, down 0.57 percent today annual proxy, filed on October 20, asks shareholders to pay CEO Seamus Grady $13.6 million, up 12% from last year, at 1,317 times the $10,331 its median employee, a production worker in Thailand, takes home 12. The same filing describes fiscal 2026, ended in June, as the sixth straight record year 14. What it does not offer shareholders is a CEO putting capital behind the record: the company repurchased only $5.2 million of stock all year 1 while insiders sold $17.0 million over twelve months without a single buy 4.
The business and the stock have come apart. Fabrinet, which manufactures the optical components at the heart of AI data-center buildouts, grew revenue 36% to $4.64 billion and net income 42% to $473 million last year 1. Yet the shares have fallen for nine straight sessions, shedding about $5.1 billion of market value 6, and closed Thursday at $324.03, roughly 57% below the 52-week high of $748.89 5.
Six straight record years, with fiscal 2026 the fastest growth of the six
- Revenue
- Net income
Data
| Revenue | Net income | |
|---|---|---|
| FY2021 | $1.88B | $0.15B |
| FY2022 | $2.26B | $0.2B |
| FY2023 | $2.65B | $0.25B |
| FY2024 | $2.88B | $0.3B |
| FY2025 | $3.42B | $0.33B |
| FY2026 | $4.64B | $0.47B |
Insiders and holders are on opposite sides of the same drawdown
Grady's pay rose even as executives sold $17 million with zero buying over the past year 4, and analyst targets have been cut toward the falling price: Susquehanna moved to $600 from $850 this week while keeping a Positive rating 5.
The institutional register split too: in the June quarter T. Rowe Price+0.63% — T. Rowe Price, up 0.63 percent today sold nearly half a stake worth about $1.07 billion while JPMorgan added a similar sum 3. A pay ratio of 1,317 to one lands oddly on holders absorbing that drawdown, and the proxy's lone valuation support, the $5.2 million buyback 1, is trivial beside it.
Two dates turn the proxy into a test
On November 2, Fabrinet reports first-quarter results, where consensus expects $4.19 of earnings per share on $1.40 billion of revenue; the company has beaten the earnings consensus in seven of the last eight quarters 8, so the record-year math faces its next test.
Revenue has risen eight straight quarters; consensus sees $1.40 billion next
- Revenue
- Estimate
Data
| Revenue | |
|---|---|
| Q3 '24 | $0.8B |
| Q4 '24 | $0.83B |
| Q1 '25 | $0.87B |
| Q2 '25 | $0.91B |
| Q3 '25 | $0.98B |
| Q4 '25 | $1.13B |
| Q1 '26 | $1.21B |
| Q2 '26 | $1.32B |
| Q3 '26e (estimate) | $1.4B |
Then on December 10, the annual meeting votes on Grady's board seat and the advisory say-on-pay 17, where the 1,317-to-1 ratio becomes a shareholder question rather than a footnote. The company notes shareholders have backed its pay since 2016 1; the circumstances this year are different, and the vote will say so.
What happens next
FNDoes the record-year growth hold after nine straight down sessions?
The case for
Revenue grew 36% and net income 42% to a sixth straight record fiscal year
The case against
The stock has fallen nine straight sessions and sits 57% below its 52-week high
- November 2Fabrinet reports fiscal Q1 2027 results.
- December 10Annual meeting votes on Grady's board seat and the advisory say-on-pay. Do shareholders back a package at 1,317 times median employee pay?
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