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Richard Chiang

Director at TAITRON COMPONENTS
Board

About Richard Chiang

Richard Chiang (age 68) has served as a Director of Taitron Components since its founding in 1989. He is Chairman of Princeton Technology Corporation, a fabless integrated circuit design company (since 1986), and Chairman of Triton Management Corporation, a venture capital fund manager overseeing more than $80 million. The Board has determined he is independent under NASDAQ and SEC rules and he currently chairs Taitron’s Compensation Committee and serves on the Audit Committee. Specific qualifications disclosed include long tenure on the board, knowledge of business strategy, and international business leadership experience supporting his role as Compensation Committee chair .

Past Roles

OrganizationRoleTenureCommittees/Impact
Taitron Components IncorporatedDirector1989–present Compensation Committee Chair; Audit Committee Member
Princeton Technology CorporationChairmanSince 1986 Industry leadership; potential supplier relationship to TAIT
Triton Management CorporationChairmanNot specified; manages >$80 million Venture capital oversight

External Roles

OrganizationPublic/PrivateRoleTenure/Notes
Princeton Technology Corporation (PTC)Not statedChairmanSince 1986; fabless IC design company
Triton Management CorporationNot statedChairmanVC fund management company managing >$80 million

Board Governance

  • Independence: The Board affirmatively determined current non‑employee directors (including Chiang) and all Audit and Compensation Committee members are independent under NASDAQ and SEC standards .
  • Committee structure and roles:
    • Audit Committee: Members include Chiang; Chair is Dubravka Pineda; held one meeting in FY2024 .
    • Compensation Committee: Chiang is Chair; held one meeting in FY2024; does not operate under a written charter; CEO participates in determinations (except for his own pay) .
    • Nominating: No standing nominating committee; independent directors function in this capacity as needed .
  • Board activity and attendance:
    • Board meetings: The Board held one meeting in the past year .
    • Annual shareholder meeting attendance: Only CEO Stewart Wang attended the 2024 annual meeting .
  • Hedging policy: The Company has not adopted policies restricting employee/officer/director hedging of Company equity .

Fixed Compensation

ComponentAmount/TermsNotes
Annual cash retainer$3,000Paid to non‑employee directors (including Chiang)
Committee feesNot disclosed
Meeting feesNot disclosed
Annual option grant5,000 non‑statutory options per yearExercisable at fair market value on date of grant
Aggregate options outstanding (FY2024)30,000Chiang outstanding director options

Performance Compensation

  • No director performance metrics (e.g., TSR, revenue, EBITDA) disclosed for director compensation; director equity is delivered via stock options without stated performance conditions .
Date (Transaction)TypeSecuritiesPricePost-Transaction PositionSource
2024-06-25Award (Non‑Qualified Stock Option)5,000 options$2.625,000 options
2022-05-26Award (Non‑Qualified Stock Option)5,000 options$0.005,000 options
2022-05-26Award (Non‑Qualified Stock Option)5,000 options$3.245,000 options
2021-08-02 (filed 2022-02-11)Award (Employee Incentive Stock Option)5,000 options$4.445,000 options

Other Directorships & Interlocks

CounterpartyRelationship to TAITNature of ActivityFY2024/FY2023 Amount
Princeton Technology Corporation (controlled by Chiang)Supplier; related partyElectronic components purchases; distributor agreement in place~$4,000 (2024); ~$5,000 (2023)

Expertise & Qualifications

  • Longstanding board experience and knowledge of Taitron’s strategies since 1989 .
  • International business leadership across semiconductor and venture capital domains .
  • Identified as suitable to chair Compensation Committee based on experience .
  • Audit Committee service; Audit Committee includes a named financial expert (Pineda) .

Equity Ownership

Measure (as of March 31, 2025)Amount%
Class A shares beneficially owned174,694 3.3% of Class A
Options exercisable within 60 days36,667
Voting power across all classes1.4%
Director options outstanding (FY2024)30,000

Governance Assessment

  • Committee leadership and independence: Chiang chairs Compensation and serves on Audit; independence affirmed by NASDAQ/SEC standards, contributing to board oversight integrity .
  • Engagement concerns: Only one Board meeting held in FY2024 and only the CEO attended the 2024 annual meeting; low disclosed engagement by independent directors may be a red flag for board effectiveness and investor confidence .
  • Compensation governance: Compensation Committee lacks a written charter and the CEO participates in deliberations (except his own pay), which may weaken formal compensation governance structures .
  • Related-party exposure: TAIT purchases from Princeton Technology Corporation, controlled by Chiang, under a distributor agreement (small amounts: ~$4k in 2024, ~$5k in 2023), reviewed under a related‑person transaction policy by the Audit Committee; while immaterial in size, it represents a standing conflict to monitor .
  • Hedging policy gap: The Company has not adopted anti‑hedging policies for employees/directors; governance best practice usually favors prohibiting hedging to ensure alignment—absence is a notable red flag .
  • Broader governance environment: 2025 developments include voluntary Nasdaq delisting (cost/benefit rationale) and CFO resignation with CEO assuming principal financial and accounting officer roles, concentrating responsibilities; these changes increase governance risk perceptions and should factor into investor confidence assessments .

RED FLAGS

  • Lack of hedging prohibition for directors/officers
  • Compensation Committee operates without a written charter; CEO participates in determinations
  • Low disclosed meeting cadence and annual meeting attendance by independent directors
  • Ongoing related‑party transactions with PTC (controlled by Chiang), albeit small
  • Delisting and CFO resignation leading to role concentration in CEO