Stewart Wang
Chief Executive Officer, President, Chief Financial Officer and Principal Accounting Officer at TAITRON COMPONENTS
CEO
Executive
Board
About Stewart Wang
Stewart Wang (age 75) is co-founder, President, CEO, and Director of Taitron Components, serving since 1989; he previously acted as CFO from 2002–2008 and holds an MBA from Pepperdine University (1989) . Company TSR (indexed to a $100 initial investment) tracked $124 (2022), $126 (2023), and $92 (2024) alongside net income of $3.208m, $1.845m, and $0.902m respectively, indicating pressure in 2024 despite positive earnings . FY revenue declined from $6.108m (2023) to $4.141m (2024) as ODM project demand softened, compressing gross profit and flipping operating income to a small loss; other/interest income and dividends supported overall profitability .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Taitron Components | President, CEO, Director | 1989–present | Co-founder; led pivot to higher-margin ODM projects; maintained profitability despite sales volatility . |
| Taitron Components | Chief Financial Officer | 2002–2008 | Oversaw finance during inventory-heavy “superstore” strategy years prior to ODM pivot . |
| Diodes Incorporated | Purchasing & MIS Manager; later COO & President | 1985–1987 | Semiconductor operations and leadership experience prior to founding TAIT . |
| Rectron Limited (Taiwan) | Sales Manager | 1983–1985 | Industry sales and channel background . |
External Roles
- None disclosed for Wang in the company’s proxy statements and 10-K .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 191,100 | 195,000 | 195,000 |
| Target Bonus % | Not disclosed | Not disclosed | Not disclosed |
| Actual Bonus ($) | 0 | 0 | 0 |
| All Other Comp ($) | 41,000 | 55,400 | 54,900 |
| Stock/Option Awards ($, grant-date fair value) | 3,000 options | 0 | 0 |
- 2025 mid-year reset: On June 30, 2025 the Board approved a 30% base salary reduction for all U.S. employees; Wang’s new annual base is $136,500 effective July 1, 2025 .
- One-time compensation: Concurrently, the Board approved a $568,750 cash payment to Wang (and $359,450 to the CFO) in consideration of the severance policy modification and salary reduction .
Performance Compensation
| Instrument/Plan | Metric(s) | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Annual Cash Bonus | Not disclosed | N/A | N/A | $0 (2022–2024) | N/A |
| Equity – Stock Options | No explicit performance metrics disclosed | N/A | N/A | See outstanding options; no RSUs/PSUs reported | Options vest in 3 equal annual installments starting 1 year from grant . |
| Pay vs Performance Framework | Net Income not a performance measure; focus on retention and shareholder alignment | N/A | N/A | See pay vs performance table in proxy | N/A . |
The company states Net Income is not currently used as a compensation performance measure; compensation emphasizes retention, annual corporate metrics (not detailed), and equity alignment .
Equity Ownership & Alignment
| Ownership Detail | Amount |
|---|---|
| Class A Common Shares owned | 1,376,438 (26.2% of Class A) |
| Class B Common Shares owned | 762,612 (100% of Class B) |
| Voting Power (all classes) | 64.6% combined voting power (Class B is 10 votes/share) |
| Options exercisable within 60 days | 37,000 |
| Indirect holdings | Includes 470,387 shares in IRA trust(s) |
| Pledging of shares | Not disclosed |
| Hedging policy | No company policy prohibiting hedging/derivative transactions by officers/directors |
| Executive stock ownership guidelines | Not disclosed |
Outstanding equity awards (as of FY-end 2024):
| Grant/Series | Exercisable | Unexercisable | Exercise Price | Expiration | Notes |
|---|---|---|---|---|---|
| Option | 10,000 | – | $2.43 | 10/5/2025 | Standard plan vesting . |
| Option | 12,000 | – | $4.88 | 8/2/2026 | Standard plan vesting . |
| Option | 10,000 | 5,000 | $3.94 | 4/25/2027 | Standard plan vesting . |
Company equity plan context (all participants):
- Options outstanding: 201,567 at $3.22 avg exercise price; shares remaining available: 522,767 (2018 Omnibus Incentive Plan) .
Employment Terms
- Contract status: No employment agreement(s) with named executive officers .
- Severance policy: Modified 6/30/2025 from one month of base salary per year of service to one week per year (U.S. employees); change accompanied by one-time cash payments and 30% base salary cut (effective 7/1/2025) .
- Change-in-control: Not disclosed in proxies/10-K reviewed.
- Non-compete/Non-solicit/Garden leave: Not disclosed.
- Clawback, tax gross-ups, deferred comp/SERP: Not disclosed.
Board Governance & Service
- Board/roles: Director since 1989; CEO; not Chairman. Chairman is co-founder Tzu‑Sheng (Johnson) Ku. Roles remain separated, though Board retains flexibility to combine .
- Committee structure: Audit and Compensation Committees composed solely of independent directors; Wang is not a committee member .
- Compensation Committee governance: Operates without a written charter; CEO provides recommendations on other executives’ pay; independent directors set CEO pay .
- Director independence: All non-employee directors (Chiang, Chung, Pineda) deemed independent under Nasdaq/SEC rules .
- Meetings/attendance: Board held one meeting in the past year; at the 2024 annual meeting, only Wang attended .
- Dual-class control: Wang holds 100% of Class B (10 votes/share), controlling ~64.6% of voting power; this presents minority shareholder governance considerations despite separate Chair/CEO roles .
Committee membership table:
| Director | Audit | Compensation |
|---|---|---|
| Richard Chiang | Member | Chair |
| Dubravka (Maria) Pineda | Chair | Member |
| Chi‑Lin (Teresa) Chung | Member | Member |
Company Performance Snapshot (Context for Pay/Alignment)
| Metric | 2023 | 2024 |
|---|---|---|
| Net Sales ($) | 6,108,000 | 4,141,000 |
| Gross Profit ($) | 3,448,000 | 2,118,000 |
| Operating Income ($) | 1,200,000 | (104,000) |
| Net Income ($) | 1,845,000 | 902,000 |
| Quarterly Dividend/Share ($) | $0.05 paid quarterly | $0.05 paid quarterly |
Pay vs Performance indicators (from proxy):
| Year | CEO “Compensation Actually Paid” ($) | TSR (Value of $100) | Net Income ($) |
|---|---|---|---|
| 2022 | 232,100 | 124 | 3,208,000 |
| 2023 | 250,400 | 126 | 1,845,000 |
| 2024 | 249,900 | 92 | 902,000 |
Additional 2025 developments:
- Base salary reduction and severance policy change (see Employment Terms) .
- Dividend policy reduced by 30% to a $0.14 annual target ($0.035 quarterly), subject to Board discretion; no dividend declared on July 7, 2025 .
Related Party Transactions (Governance Signal)
- Purchases from Princeton Technology Corp., controlled by director Richard Chiang: ~$4,000 (2024) and ~$5,000 (2023), under a distributor agreement; Company deems on arm’s-length terms .
Compensation Structure Analysis (Signals)
- Cash vs equity mix: CEO comp is predominantly fixed cash; no annual cash bonus paid 2022–2024; limited option grants in recent years (none in 2023–2024 for CEO) .
- Performance linkage: Company explicitly notes Net Income is not used as a performance measure; performance metrics and weightings are not disclosed—reducing transparency of pay-for-performance alignment .
- Governance controls: No hedging policy and no Compensation Committee charter are notable governance gaps; dual-class voting confers effective control to CEO .
- 2025 changes: A sizable one-time payment tied to modifying severance and cutting salary may indicate near-term retention priorities; severance formula reduction lowers future termination cost exposure .
Investment Implications
- Alignment and control: Wang’s ~64.6% voting control via Class B, absence of a hedging policy, and lack of a Compensation Committee charter increase governance risk and reduce minority influence; however, separate Chair/CEO roles partially mitigate concentration of authority .
- Pay-for-performance: With no disclosed performance metrics and bonuses at $0 for multiple years, CEO pay is largely fixed; option overhang is modest and CEO option holdings are small relative to share ownership, limiting near-term selling pressure from vesting schedules .
- Retention/cost actions: The 2025 combination of salary cuts and a one-time payment suggests a reset to a lower ongoing cash run-rate while providing immediate consideration; the severance formula change reduces prospective liabilities, which could be favorable for shareholders if operating conditions remain volatile .
- Financial trajectory: Sales and net income declined in 2024, with operating income negative; dividends were paid in 2023–2024 but policy was reduced by 30% in 2025, reflecting a more conservative capital return posture amid softer revenue and customer concentration risk .