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How Much is Chander Electronics' (GTSM:8068) CEO Getting Paid?
Shao-Lun Li became the CEO of Chander Electronics Corp. (GTSM:8068) in 2018, 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 assess whether Chander Electronics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Chander Electronics
Comparing Chander Electronics Corp.'s CEO Compensation With the industry
Our data indicates that Chander Electronics Corp. has a market capitalization of NT$1.9b, and total annual CEO compensation was reported as NT$5.1m for the year to December 2019. That's a notable increase of 8.5% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth NT$5.1m.
On comparing similar-sized companies in the industry with market capitalizations below NT$5.7b, we found that the median total CEO compensation was NT$3.8m. This suggests that Shao-Lun Li is paid more than the median for the industry.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | NT$5.1m | NT$4.7m | 100% |
| Other | - | - | - |
| Total Compensation | NT$5.1m | NT$4.7m | 100% |
Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7.4% is other remuneration. At the company level, Chander Electronics pays Shao-Lun Li solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Chander Electronics Corp.'s Growth Numbers
Chander Electronics Corp. has reduced its earnings per share by 86% a year over the last three years. It saw its revenue drop 42% over the last year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Chander Electronics Corp. Been A Good Investment?
Given the total shareholder loss of 4.7% over three years, many shareholders in Chander Electronics Corp. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Chander Electronics rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Chander Electronics pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. What's equally worrying is that the company isn't growing by our analysis. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Chander Electronics (of which 2 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
About TPEX:8068
Chander Electronics
Engages in the distribution, trade, and maintenance of electronic components, integrated circuits, and computer equipment in Taiwan, Hong Kong, China, and internationally.
Adequate balance sheet and slightly overvalued.
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