We Discuss Whether EVA Airways Corp.'s (TWSE:2618) CEO Is Due For A Pay Rise

Key Insights

• EVA Airways to hold its Annual General Meeting on 29th of May
• Salary of NT$3.91m is part of CEO Chia-Ming Sun's total remuneration
• Total compensation is 90% below industry average
• Over the past three years, EVA Airways' EPS grew by 70% and over the past three years, the total shareholder return was 135%

The solid performance at EVA Airways Corp. (TWSE:2618) has been impressive and shareholders will probably be pleased to know that CEO Chia-Ming Sun has delivered. At the upcoming AGM on 29th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for EVA Airways

Comparing EVA Airways Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that EVA Airways Corp. has a market capitalization of NT$193b, and reported total annual CEO compensation of NT$8.9m for the year to December 2023. Notably, that's an increase of 9.5% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at NT$3.9m.

For comparison, other companies in the Taiwan Airlines industry with market capitalizations ranging between NT$129b and NT$387b had a median total CEO compensation of NT$90m. That is to say, Chia-Ming Sun is paid under the industry median. Moreover, Chia-Ming Sun also holds NT$3.6m worth of EVA Airways stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	NT$3.9m	NT$3.9m	44%
Other	NT$5.0m	NT$4.3m	56%
Total Compensation	NT$8.9m	NT$8.1m	100%

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. There isn't a significant difference between EVA Airways and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at EVA Airways Corp.'s Growth Numbers

EVA Airways Corp. has seen its earnings per share (EPS) increase by 70% a year over the past three years. It achieved revenue growth of 36% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has EVA Airways Corp. Been A Good Investment?

Boasting a total shareholder return of 135% over three years, EVA Airways Corp. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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. That's why we did our research, and identified 2 warning signs for EVA Airways (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from EVA Airways, 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.