Kevin Tseng is the CEO of Alexander Marine Co., Ltd. (TPE:8478), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Alexander Marine
Comparing Alexander Marine Co., Ltd.'s CEO Compensation With the industry
Our data indicates that Alexander Marine Co., Ltd. has a market capitalization of NT$5.3b, and total annual CEO compensation was reported as NT$4.8m for the year to December 2019. We note that's a decrease of 9.4% compared to last year. In particular, the salary of NT$4.15m, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations ranging from NT$2.8b to NT$11b, the reported median CEO total compensation was NT$5.1m. From this we gather that Kevin Tseng is paid around the median for CEOs in the industry.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | NT$4.1m | NT$4.9m | 86% |
| Other | NT$685k | NT$387k | 14% |
| Total Compensation | NT$4.8m | NT$5.3m | 100% |
Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. Alexander Marine is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Alexander Marine Co., Ltd.'s Growth
Alexander Marine Co., Ltd. has reduced its earnings per share by 37% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Alexander Marine Co., Ltd. Been A Good Investment?
Since shareholders would have lost about 19% over three years, some Alexander Marine Co., Ltd. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, Alexander Marine pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Alexander Marine (2 shouldn't be ignored!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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About TWSE:8478
Alexander Marine
Engages in the design, manufacture, and sale of yachts in Taiwan, Europe, Australia, and the United States.
Excellent balance sheet and good value.
