How Does K Laser Technology's (TPE:2461) CEO Salary Compare to Peers?

The CEO of K Laser Technology Inc. (TPE:2461) is Alex Kuo, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether K Laser Technology pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for K Laser Technology

How Does Total Compensation For Alex Kuo Compare With Other Companies In The Industry?

According to our data, K Laser Technology Inc. has a market capitalization of NT$2.9b, and paid its CEO total annual compensation worth NT$3.3m over the year to December 2019. We note that's a decrease of 19% compared to last year. Notably, the salary which is NT$2.38m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under NT$5.6b, the reported median total CEO compensation was NT$1.9m. This suggests that Alex Kuo is paid more than the median for the industry.

Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6.5% is other remuneration. K Laser Technology pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at K Laser Technology Inc.'s Growth Numbers

Over the last three years, K Laser Technology Inc. has shrunk its earnings per share by 101% per year. Revenue was pretty flat on last year.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. 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 K Laser Technology Inc. Been A Good Investment?

K Laser Technology Inc. has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we touched on above, K Laser Technology Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, EPS has not grown in three years, failing to impress us. And shareholder returns are decent but not great. So you can understand why we do not think CEO compensation is particularly modest!

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for K Laser Technology that investors should be aware of in a dynamic business environment.

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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