Is Silitech Technology Corporation's (TPE:3311) CEO Being Overpaid?

James Huang became the CEO of Silitech Technology Corporation (TPE:3311) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Silitech Technology

How Does James Huang's Compensation Compare With Similar Sized Companies?

Our data indicates that Silitech Technology Corporation is worth NT$1.1b, and total annual CEO compensation was reported as NT$3.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at NT$2.8m. We examined a group of similar sized companies, with market capitalizations of below NT$6.1b. The median CEO total compensation in that group is NT$3.5m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Silitech Technology stands. On a sector level, around 94% of total compensation represents salary and 5.8% is other remuneration. Silitech Technology does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

That means James Huang receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at Silitech Technology, below.

Is Silitech Technology Corporation Growing?

On average over the last three years, Silitech Technology Corporation has grown earnings per share (EPS) by 60% each year (using a line of best fit). It achieved revenue growth of 2.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Silitech Technology Corporation Been A Good Investment?

With a three year total loss of 30%, Silitech Technology Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

James Huang is paid around the same as most CEOs of similar size companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. On another note, we've spotted 3 warning signs for Silitech Technology that investors should look into moving forward.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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