This Is Why Endurance Technologies Limited's (NSE:ENDURANCE) CEO Can Expect A Bump Up In Their Pay Packet

Simply Wall St
August 18, 2021
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Shareholders will be pleased by the robust performance of Endurance Technologies Limited (NSE:ENDURANCE) recently and this will be kept in mind in the upcoming AGM on 25 August 2021. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for Endurance Technologies

Comparing Endurance Technologies Limited's CEO Compensation With the industry

At the time of writing, our data shows that Endurance Technologies Limited has a market capitalization of ₹224b, and reported total annual CEO compensation of ₹46m for the year to March 2021. We note that's a decrease of 23% compared to last year. Notably, the salary of ₹46m is the entirety of the CEO compensation.

On comparing similar companies from the same industry with market caps ranging from ₹149b to ₹476b, we found that the median CEO total compensation was ₹76m. Accordingly, Endurance Technologies pays its CEO under the industry median. Furthermore, Anurang Jain directly owns ₹141b worth of shares in the company, implying that they are deeply invested in the company's success.

Component20212020Proportion (2021)
Salary ₹46m ₹59m 100%
Other - - -
Total Compensation₹46m ₹59m100%

On an industry level, roughly 75% of total compensation represents salary and 25% is other remuneration. At the company level, Endurance Technologies pays Anurang Jain solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

NSEI:ENDURANCE CEO Compensation August 19th 2021

A Look at Endurance Technologies Limited's Growth Numbers

Endurance Technologies Limited's earnings per share (EPS) grew 15% per year over the last three years. In the last year, its revenue is up 36%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Endurance Technologies Limited Been A Good Investment?

Endurance Technologies Limited has generated a total shareholder return of 5.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Endurance Technologies pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Endurance Technologies that investors should think about before committing capital to this stock.

Important note: Endurance Technologies 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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