How Is Bharat Road Network's (NSE:BRNL) CEO Paid Relative To Peers?

Bajrang Choudhary became the CEO of Bharat Road Network Limited (NSE:BRNL) in 2016, 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 evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Bharat Road Network

Comparing Bharat Road Network Limited's CEO Compensation With the industry

According to our data, Bharat Road Network Limited has a market capitalization of ₹2.7b, and paid its CEO total annual compensation worth ₹14m over the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary of ₹14m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹6.7m. Accordingly, our analysis reveals that Bharat Road Network Limited pays Bajrang Choudhary north of the industry median.

Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 6.9% is other remuneration. At the company level, Bharat Road Network pays Bajrang Choudhary solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Bharat Road Network Limited's Growth Numbers

Over the past three years, Bharat Road Network Limited has seen its earnings per share (EPS) grow by 98% per year. In the last year, its revenue is down 25%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bharat Road Network Limited Been A Good Investment?

With a three year total loss of 82% for the shareholders, Bharat Road Network Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Bharat Road Network pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Bajrang is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Bajrang is underpaid, in fact compensation is definitely on the higher side.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Bharat Road Network that you should be aware of before investing.

Important note: Bharat Road Network is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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