How Much Is Sigurd Microelectronics' (TPE:6257) CEO Getting Paid?

Sidney Huang is the CEO of Sigurd Microelectronics Corporation (TPE:6257), 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.

See our latest analysis for Sigurd Microelectronics

Comparing Sigurd Microelectronics Corporation's CEO Compensation With the industry

At the time of writing, our data shows that Sigurd Microelectronics Corporation has a market capitalization of NT$19b, and reported total annual CEO compensation of NT$40m for the year to December 2019. That's a modest increase of 3.7% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at NT$19m.

In comparison with other companies in the industry with market capitalizations ranging from NT$11b to NT$46b, the reported median CEO total compensation was NT$12m. Hence, we can conclude that Sidney Huang is remunerated higher than the industry median. Furthermore, Sidney Huang directly owns NT$344m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. It's interesting to note that Sigurd Microelectronics allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Sigurd Microelectronics Corporation's Growth Numbers

Sigurd Microelectronics Corporation has seen its earnings per share (EPS) increase by 25% a year over the past three years. Its revenue is up 36% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sigurd Microelectronics Corporation Been A Good Investment?

Boasting a total shareholder return of 70% over three years, Sigurd Microelectronics Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As previously discussed, Sidney is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, Sigurd Microelectronics has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Sidney's performance creates value for the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Sigurd Microelectronics you should be aware of, and 1 of them is a bit unpleasant.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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