Here's What We Think About JMC Projects (India)'s (NSE:JMCPROJECT) CEO Pay

Shailendra Tripathi became the CEO of JMC Projects (India) Limited (NSE:JMCPROJECT) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether JMC Projects (India) pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for JMC Projects (India)

Comparing JMC Projects (India) Limited's CEO Compensation With the industry

Our data indicates that JMC Projects (India) Limited has a market capitalization of ₹7.9b, and total annual CEO compensation was reported as ₹34m for the year to March 2020. We note that's a small decrease of 4.4% on last year. In particular, the salary of ₹19.6m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹6.0m. This suggests that Shailendra Tripathi is paid more than the median for the industry.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. JMC Projects (India) sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

JMC Projects (India) Limited's Growth

Over the past three years, JMC Projects (India) Limited has seen its earnings per share (EPS) grow by 54% per year. Its revenue is up 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 JMC Projects (India) Limited Been A Good Investment?

With a three year total loss of 29% for the shareholders, JMC Projects (India) Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, JMC Projects (India) pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the earnings per share growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think Shailendra is earning a very handsome sum.

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. In our study, we found 4 warning signs for JMC Projects (India) you should be aware of, and 1 of them shouldn't be ignored.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. 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.
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