How Much Is Samsung Biologics Co.,Ltd. (KRX:207940) CEO Getting Paid?

This article will reflect on the compensation paid to Tae-Han Kim who has served as CEO of Samsung Biologics Co.,Ltd. (KRX:207940) since 2011. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Samsung BiologicsLtd

How Does Total Compensation For Tae-Han Kim Compare With Other Companies In The Industry?

At the time of writing, our data shows that Samsung Biologics Co.,Ltd. has a market capitalization of ₩58t, and reported total annual CEO compensation of ₩2.0b for the year to December 2019. That's a notable decrease of 49% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₩790m.

In comparison with other companies in the industry with market capitalizations over ₩8.7t , the reported median total CEO compensation was ₩2.0b. So it looks like Samsung BiologicsLtd compensates Tae-Han Kim in line with the median for the industry. Furthermore, Tae-Han Kim directly owns ₩40b worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 98% of total compensation represents salary, while the remainder of 1.7% is other remuneration. Samsung BiologicsLtd sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Samsung Biologics Co.,Ltd.'s Growth Numbers

Samsung Biologics Co.,Ltd.'s earnings per share (EPS) grew 90% per year over the last three years. In the last year, its revenue is up 67%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Samsung Biologics Co.,Ltd. Been A Good Investment?

Boasting a total shareholder return of 145% over three years, Samsung Biologics Co.,Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, Samsung Biologics Co.,Ltd. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. Indeed, many might consider that Tae-Han is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Samsung BiologicsLtd (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Samsung BiologicsLtd, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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