Shareholders May Not Be So Generous With Taiwan Secom Co., Ltd.'s (TWSE:9917) CEO Compensation And Here's Why

Key Insights

• Taiwan Secom to hold its Annual General Meeting on 30th of May
• Total pay for CEO Jian-Han Lin includes NT$14.1m salary
• The total compensation is 689% higher than the average for the industry
• Taiwan Secom's EPS grew by 2.0% over the past three years while total shareholder return over the past three years was 60%

Performance at Taiwan Secom Co., Ltd. (TWSE:9917) has been reasonably good and CEO Jian-Han Lin has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of May. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Taiwan Secom

Comparing Taiwan Secom Co., Ltd.'s CEO Compensation With The Industry

According to our data, Taiwan Secom Co., Ltd. has a market capitalization of NT$58b, and paid its CEO total annual compensation worth NT$58m over the year to December 2023. We note that's an increase of 51% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at NT$14m.

In comparison with other companies in the Taiwan Commercial Services industry with market capitalizations ranging from NT$32b to NT$103b, the reported median CEO total compensation was NT$7.4m. This suggests that Jian-Han Lin is paid more than the median for the industry. Furthermore, Jian-Han Lin directly owns NT$463m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	NT$14m	NT$12m	24%
Other	NT$44m	NT$26m	76%
Total Compensation	NT$58m	NT$38m	100%

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. In Taiwan Secom's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Taiwan Secom Co., Ltd.'s Growth Numbers

Over the past three years, Taiwan Secom Co., Ltd. has seen its earnings per share (EPS) grow by 2.0% per year. In the last year, its revenue is up 10%.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

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

We think that the total shareholder return of 60%, over three years, would leave most Taiwan Secom Co., Ltd. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Taiwan Secom that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.