Ta Chen Stainless Pipe Co., Ltd.'s (TWSE:2027) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Ta Chen Stainless Pipe's Annual General Meeting to take place on 19th of June
• Total pay for CEO Robert Shieh includes NT$11.7m salary
• Total compensation is 225% above industry average
• Over the past three years, Ta Chen Stainless Pipe's EPS grew by 49% and over the past three years, the total shareholder return was 14%

Under the guidance of CEO Robert Shieh, Ta Chen Stainless Pipe Co., Ltd. (TWSE:2027) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Ta Chen Stainless Pipe

How Does Total Compensation For Robert Shieh Compare With Other Companies In The Industry?

According to our data, Ta Chen Stainless Pipe Co., Ltd. has a market capitalization of NT$81b, and paid its CEO total annual compensation worth NT$17m over the year to December 2023. That's a notable decrease of 13% on last year. Notably, the salary which is NT$11.7m, represents most of the total compensation being paid.

For comparison, other companies in the Taiwanese Metals and Mining industry with market capitalizations ranging between NT$65b and NT$207b had a median total CEO compensation of NT$5.3m. Hence, we can conclude that Robert Shieh is remunerated higher than the industry median. What's more, Robert Shieh holds NT$6.0b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	NT$12m	NT$14m	68%
Other	NT$5.4m	NT$5.7m	32%
Total Compensation	NT$17m	NT$20m	100%

On an industry level, around 95% of total compensation represents salary and 5% is other remuneration. In Ta Chen Stainless Pipe's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Ta Chen Stainless Pipe Co., Ltd.'s Growth

Ta Chen Stainless Pipe Co., Ltd. has seen its earnings per share (EPS) increase by 49% a year over the past three years. It saw its revenue drop 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ta Chen Stainless Pipe Co., Ltd. Been A Good Investment?

With a total shareholder return of 14% over three years, Ta Chen Stainless Pipe Co., Ltd. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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. That's why we did some digging and identified 2 warning signs for Ta Chen Stainless Pipe that investors should think about before committing capital to this stock.

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. 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.