How Much Is Suprajit Engineering's (NSE:SUPRAJIT) CEO Getting Paid?

Mohan Nagamangala has been the CEO of Suprajit Engineering Limited (NSE:SUPRAJIT) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Suprajit Engineering

How Does Total Compensation For Mohan Nagamangala Compare With Other Companies In The Industry?

According to our data, Suprajit Engineering Limited has a market capitalization of ₹30b, and paid its CEO total annual compensation worth ₹19m over the year to March 2020. That's just a smallish increase of 6.1% on last year. Notably, the salary which is ₹13.5m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between ₹15b and ₹58b had a median total CEO compensation of ₹29m. Accordingly, Suprajit Engineering pays its CEO under the industry median. Moreover, Mohan Nagamangala also holds ₹1.8m worth of Suprajit Engineering stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. There isn't a significant difference between Suprajit Engineering and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Suprajit Engineering Limited's Growth

Suprajit Engineering Limited has reduced its earnings per share by 20% a year over the last three years. Its revenue is down 11% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Suprajit Engineering Limited Been A Good Investment?

Given the total shareholder loss of 30% over three years, many shareholders in Suprajit Engineering Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Suprajit Engineering pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Suprajit Engineering that investors should be aware of in a dynamic business environment.

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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