What Does Asian Granito India's (NSE:ASIANTILES) CEO Pay Reveal?

Kamleshkumar Patel has been the CEO of Asian Granito India Limited (NSE:ASIANTILES) since 2002, 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 Asian Granito India.

See our latest analysis for Asian Granito India

Comparing Asian Granito India Limited's CEO Compensation With the industry

According to our data, Asian Granito India Limited has a market capitalization of ₹7.9b, and paid its CEO total annual compensation worth ₹4.4m over the year to March 2020. That's a modest increase of 5.3% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.4m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹5.2m. This suggests that Asian Granito India remunerates its CEO largely in line with the industry average. Furthermore, Kamleshkumar Patel directly owns ₹1.3b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Speaking on a company level, Asian Granito India prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

A Look at Asian Granito India Limited's Growth Numbers

Earnings per share at Asian Granito India Limited are much the same as they were three years ago, albeit slightly lower. It saw its revenue drop 16% over the last year.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Asian Granito India Limited Been A Good Investment?

With a three year total loss of 49% for the shareholders, Asian Granito India Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Asian Granito India pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Asian Granito India pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Asian Granito India you should be aware of, and 1 of them makes us a bit uncomfortable.

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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