How Much Did Sunny Friend Environmental Technology's (TPE:8341) CEO Pocket Last Year?

The CEO of Sunny Friend Environmental Technology Co., Ltd. (TPE:8341) is Fang-Chen Chang, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Sunny Friend Environmental Technology.

See our latest analysis for Sunny Friend Environmental Technology

How Does Total Compensation For Fang-Chen Chang Compare With Other Companies In The Industry?

According to our data, Sunny Friend Environmental Technology Co., Ltd. has a market capitalization of NT$26b, and paid its CEO total annual compensation worth NT$21m over the year to December 2019. That's a notable increase of 14% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at NT$2.6m.

In comparison with other companies in the industry with market capitalizations ranging from NT$11b to NT$45b, the reported median CEO total compensation was NT$8.3m. This suggests that Fang-Chen Chang is paid more than the median for the industry.

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9.1% is other remuneration. It's interesting to note that Sunny Friend Environmental Technology allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Sunny Friend Environmental Technology Co., Ltd.'s Growth Numbers

Sunny Friend Environmental Technology Co., Ltd.'s earnings per share (EPS) grew 7.5% per year over the last three years. Its revenue is up 10.0% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Sunny Friend Environmental Technology Co., Ltd. Been A Good Investment?

With a total shareholder return of 0.5% over three years, Sunny Friend Environmental Technology Co., Ltd. has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As we touched on above, Sunny Friend Environmental Technology Co., Ltd. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the business isn't growing EPS, and the returns to shareholders haven't been wonderful. We'd stop short of saying CEO pay is inappropriate, but we'd like to see healthier business growth from the company, moving forward.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Sunny Friend Environmental Technology we think you should know about.

Important note: Sunny Friend Environmental Technology is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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