How Does Horizon Securities' (GTSM:6015) CEO Salary Compare to Peers?

Yimin Lin has been the CEO of Horizon Securities Co., Ltd. (GTSM:6015) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Horizon Securities pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Horizon Securities

How Does Total Compensation For Yimin Lin Compare With Other Companies In The Industry?

At the time of writing, our data shows that Horizon Securities Co., Ltd. has a market capitalization of NT$2.6b, and reported total annual CEO compensation of NT$4.3m for the year to December 2019. That's a modest increase of 7.7% on the prior year. In particular, the salary of NT$4.12m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below NT$5.7b, reported a median total CEO compensation of NT$773k. This suggests that Yimin Lin is paid more than the median for the industry.

Speaking on an industry level, nearly 97% of total compensation represents salary, while the remainder of 2.7% is other remuneration. Investors will find it interesting that Horizon Securities pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Horizon Securities Co., Ltd.'s Growth

Horizon Securities Co., Ltd. has seen its earnings per share (EPS) increase by 14% a year over the past three years. In the last year, its revenue is up 58%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Horizon Securities Co., Ltd. Been A Good Investment?

With a three year total loss of 3.0% for the shareholders, Horizon Securities Co., Ltd. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Yimin receives almost all of their compensation through a salary. As previously discussed, Yimin is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we'd stop short of calling it inappropriate, we think Yimin is earning a very handsome sum.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Horizon Securities you should be aware of, and 1 of them is significant.

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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