How Much Is CMC Magnetics Corporation (TPE:2323) CEO Getting Paid?

Bob Wong is the CEO of CMC Magnetics Corporation (TPE:2323), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether CMC Magnetics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for CMC Magnetics

Comparing CMC Magnetics Corporation's CEO Compensation With the industry

According to our data, CMC Magnetics Corporation has a market capitalization of NT$9.7b, and paid its CEO total annual compensation worth NT$4.6m over the year to December 2019. That's a fairly small increase of 7.4% over the previous year. In particular, the salary of NT$4.32m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from NT$5.7b to NT$23b, the reported median CEO total compensation was NT$10m. That is to say, Bob Wong is paid under the industry median. Furthermore, Bob Wong directly owns NT$747m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. CMC Magnetics pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at CMC Magnetics Corporation's Growth Numbers

CMC Magnetics Corporation has seen its earnings per share (EPS) increase by 48% a year over the past three years. In the last year, its revenue is up 14%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has CMC Magnetics Corporation Been A Good Investment?

Boasting a total shareholder return of 37% over three years, CMC Magnetics Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, CMC Magnetics pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for CMC Magnetics that you should be aware of before investing.

Switching gears from CMC Magnetics, 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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