How Much Is R Systems International Limited (NSE:RSYSTEMS) CEO Getting Paid?

Satinder Rekhi has been the CEO of R Systems International Limited (NSE:RSYSTEMS) since 2011, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for R Systems International.

Check out our latest analysis for R Systems International

Comparing R Systems International Limited's CEO Compensation With the industry

Our data indicates that R Systems International Limited has a market capitalization of ₹12b, and total annual CEO compensation was reported as ₹41m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is ₹29.9m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from ₹7.5b to ₹30b, the reported median CEO total compensation was ₹23m. Hence, we can conclude that Satinder Rekhi is remunerated higher than the industry median. What's more, Satinder Rekhi holds ₹1.5b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. In R Systems International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

R Systems International Limited's Growth

R Systems International Limited's earnings per share (EPS) grew 4.4% per year over the last three years. Its revenue is up 10% over the last year.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has R Systems International Limited Been A Good Investment?

We think that the total shareholder return of 162%, over three years, would leave most R Systems International Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As we touched on above, R Systems International Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, shareholder returns for the last three years have been excellent. Albeit, earnings growth has not been as impressive over the same time frame. We'd ideally want to see higher earnings growth, but CEO compensation seems to be within reason, given high shareholder returns.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for R Systems International (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from R Systems International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

If you decide to trade R Systems International, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.