Does J. Kumar Infraprojects' (NSE:JKIL) CEO Salary Compare Well With The Performance Of The Company?

The CEO of J. Kumar Infraprojects Limited (NSE:JKIL) is Kamal Gupta, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether J. Kumar Infraprojects pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for J. Kumar Infraprojects

Comparing J. Kumar Infraprojects Limited's CEO Compensation With the industry

At the time of writing, our data shows that J. Kumar Infraprojects Limited has a market capitalization of ₹8.2b, and reported total annual CEO compensation of ₹30m for the year to March 2020. That's a notable increase of 100% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹30m.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹5.1m. Hence, we can conclude that Kamal Gupta is remunerated higher than the industry median. What's more, Kamal Gupta holds ₹567m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Speaking on a company level, J. Kumar Infraprojects prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at J. Kumar Infraprojects Limited's Growth Numbers

Over the last three years, J. Kumar Infraprojects Limited has shrunk its earnings per share by 10% per year. It saw its revenue drop 18% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has J. Kumar Infraprojects Limited Been A Good Investment?

Since shareholders would have lost about 55% over three years, some J. Kumar Infraprojects Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

J. Kumar Infraprojects pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, J. Kumar Infraprojects pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, EPS growth has also been negative during this period. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for J. Kumar Infraprojects that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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