How Much Is Taiwan Secom Co., Ltd. (TPE:9917) Paying Its CEO?

Hirofumi Onodera has been the CEO of Taiwan Secom Co., Ltd. (TPE:9917) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Taiwan Secom pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Taiwan Secom

How Does Total Compensation For Hirofumi Onodera Compare With Other Companies In The Industry?

At the time of writing, our data shows that Taiwan Secom Co., Ltd. has a market capitalization of NT$38b, and reported total annual CEO compensation of NT$12m for the year to December 2019. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at NT$5.3m.

On examining similar-sized companies in the industry with market capitalizations between NT$28b and NT$90b, we discovered that the median CEO total compensation of that group was NT$7.3m. Accordingly, our analysis reveals that Taiwan Secom Co., Ltd. pays Hirofumi Onodera north of the industry median. Furthermore, Hirofumi Onodera directly owns NT$10m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 91% of total compensation represents salary and 9.1% is other remuneration. Taiwan Secom pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Taiwan Secom Co., Ltd.'s Growth

Taiwan Secom Co., Ltd.'s earnings per share (EPS) grew 29% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Taiwan Secom Co., Ltd. Been A Good Investment?

Taiwan Secom Co., Ltd. has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Taiwan Secom pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the high CEO pay, given the good EPS growth.

So you may want to check if insiders are buying Taiwan Secom shares with their own money (free access).

Switching gears from Taiwan Secom, 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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