Should You Worry About Taitron Components Incorporated’s (NASDAQ:TAIT) CEO Pay?

In 1989 Stewart Wang was appointed CEO of Taitron Components Incorporated (NASDAQ:TAIT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Taitron Components

How Does Stewart Wang’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Taitron Components Incorporated has a market cap of US$11m, and is paying total annual CEO compensation of US$230k. That’s a modest increase of 4.0% on the prior year year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$292k.

So Stewart Wang is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Taitron Components has changed over time.

NasdaqCM:TAIT CEO Compensation November 21st 18
NasdaqCM:TAIT CEO Compensation November 21st 18

Is Taitron Components Incorporated Growing?

Taitron Components Incorporated has increased its earnings per share (EPS) by an average of 33% a year, over the last three years In the last year, its revenue is up 1.1%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Taitron Components Incorporated Been A Good Investment?

Most shareholders would probably be pleased with Taitron Components Incorporated for providing a total return of 146% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Stewart Wang is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance!

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.