How Much Is Foxconn Technology Co., Ltd. (TPE:2354) CEO Getting Paid?

The CEO of Foxconn Technology Co., Ltd. (TPE:2354) is Han-Ming Lee, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Foxconn Technology

How Does Total Compensation For Han-Ming Lee Compare With Other Companies In The Industry?

According to our data, Foxconn Technology Co., Ltd. has a market capitalization of NT$74b, and paid its CEO total annual compensation worth NT$6.9m over the year to December 2019. We note that's a decrease of 49% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at NT$1.7m.

For comparison, other companies in the same industry with market capitalizations ranging between NT$57b and NT$183b had a median total CEO compensation of NT$23m. This suggests that Han-Ming Lee is paid below the industry median. Furthermore, Han-Ming Lee directly owns NT$19m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9.3% of the pie. Foxconn Technology pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Foxconn Technology Co., Ltd.'s Growth

Over the last three years, Foxconn Technology Co., Ltd. has shrunk its earnings per share by 11% per year. It saw its revenue drop 6.6% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Foxconn Technology Co., Ltd. Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Foxconn Technology Co., Ltd. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Foxconn Technology pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Han-Ming is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Foxconn Technology that investors should think about before committing capital to this stock.

Switching gears from Foxconn Technology, 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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