How Is MetaTech (AP)'s (GTSM:3224) CEO Compensated?

This article will reflect on the compensation paid to David Tang who has served as CEO of MetaTech (AP) Inc. (GTSM:3224) since 2016. 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 MetaTech (AP)

Comparing MetaTech (AP) Inc.'s CEO Compensation With the industry

Our data indicates that MetaTech (AP) Inc. has a market capitalization of NT$2.6b, and total annual CEO compensation was reported as NT$3.4m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at NT$3.05m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below NT$5.7b, reported a median total CEO compensation of NT$3.4m. From this we gather that David Tang is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9.3% is other remuneration. There isn't a significant difference between MetaTech (AP) and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

MetaTech (AP) Inc.'s Growth

MetaTech (AP) Inc. has reduced its earnings per share by 63% a year over the last three years. In the last year, its revenue is up 15%.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has MetaTech (AP) Inc. Been A Good Investment?

MetaTech (AP) Inc. has not done too badly by shareholders, with a total return of 6.5%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we touched on above, MetaTech (AP) Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But revenues have been growing at a healthy pace, more recently. Shareholder returns, in comparison, have not been as impressive during the same period. Additionally, shareholders would want to keep their eyes on EPS, since growth has been negative for the metric for the last three years. There's certainly room for improvement, but CEO compensation seems reasonable, considering the company's steady performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in MetaTech (AP) we think you should know about.

Switching gears from MetaTech (AP), 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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