Does Green River Holding's (GTSM:8444) CEO Salary Compare Well With Industry Peers?

Teng-Shih Huang became the CEO of Green River Holding Co. Ltd. (GTSM:8444) in 2013, and we think it's a good time to look at 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 Green River Holding.

View our latest analysis for Green River Holding

Comparing Green River Holding Co. Ltd.'s CEO Compensation With the industry

According to our data, Green River Holding Co. Ltd. has a market capitalization of NT$5.8b, and paid its CEO total annual compensation worth NT$2.1m over the year to December 2019. Notably, that's an increase of 18% over the year before. Notably, the salary which is NT$1.74m, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between NT$2.8b and NT$11b, we discovered that the median CEO total compensation of that group was NT$8.1m. That is to say, Teng-Shih Huang is paid under the industry median.

On an industry level, around 88% of total compensation represents salary and 12% is other remuneration. Our data reveals that Green River Holding allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Green River Holding Co. Ltd.'s Growth

Over the last three years, Green River Holding Co. Ltd. has shrunk its earnings per share by 110% per year. It achieved revenue growth of 2.9% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Green River Holding Co. Ltd. Been A Good Investment?

With a three year total loss of 44% for the shareholders, Green River Holding Co. Ltd. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Green River Holding pays its CEO lower than the norm for similar-sized companies belonging to the same industry. EPS growth has failed to impress us, and the same can be said about shareholder returns. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Green River Holding that investors should look into moving forward.

Switching gears from Green River Holding, 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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