Increases to CEO Compensation Might Be Put On Hold For Now at Coral India Finance and Housing Limited (NSE:CORALFINAC)

Key Insights

• Coral India Finance and Housing to hold its Annual General Meeting on 30th of August
• CEO Navin Doshi's total compensation includes salary of ₹4.80m
• The overall pay is 60% above the industry average
• Coral India Finance and Housing's total shareholder return over the past three years was 50% while its EPS grew by 16% over the past three years

Under the guidance of CEO Navin Doshi, Coral India Finance and Housing Limited (NSE:CORALFINAC) has performed reasonably well recently. As shareholders go into the upcoming AGM on 30th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Coral India Finance and Housing

Comparing Coral India Finance and Housing Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Coral India Finance and Housing Limited has a market capitalization of ₹2.4b, and reported total annual CEO compensation of ₹4.8m for the year to March 2024. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.8m.

On comparing similar-sized companies in the Indian Construction industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹3.0m. Accordingly, our analysis reveals that Coral India Finance and Housing Limited pays Navin Doshi north of the industry median. Moreover, Navin Doshi also holds ₹1.1b worth of Coral India Finance and Housing stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹4.8m	₹4.8m	100%
Other	-	-	-
Total Compensation	₹4.8m	₹4.8m	100%

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. At the company level, Coral India Finance and Housing pays Navin Doshi 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.

Coral India Finance and Housing Limited's Growth

Over the past three years, Coral India Finance and Housing Limited has seen its earnings per share (EPS) grow by 16% per year. It saw its revenue drop 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Coral India Finance and Housing Limited Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Coral India Finance and Housing Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Coral India Finance and Housing rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Coral India Finance and Housing (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.