How Much Is Jash Engineering's (NSE:JASH) CEO Getting Paid?

The CEO of Jash Engineering Limited (NSE:JASH) is Pratik Patel, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Jash Engineering.

View our latest analysis for Jash Engineering

Comparing Jash Engineering Limited's CEO Compensation With the industry

Our data indicates that Jash Engineering Limited has a market capitalization of ₹3.2b, and total annual CEO compensation was reported as ₹6.8m for the year to March 2020. Notably, that's an increase of 24% over the year before. Notably, the salary which is ₹5.71m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹4.5m. This suggests that Pratik Patel is paid more than the median for the industry. What's more, Pratik Patel holds ₹724m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7.3% is other remuneration. Our data reveals that Jash Engineering allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Jash Engineering Limited's Growth

Jash Engineering Limited's earnings per share (EPS) grew 256% per year over the last three years. It saw its revenue drop 6.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jash Engineering Limited Been A Good Investment?

Boasting a total shareholder return of 69% over three years, Jash Engineering Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we noted earlier, Jash Engineering pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, Jash Engineering has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Pratik's performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Jash Engineering we think you should know about.

Important note: Jash Engineering 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.

If you decide to trade Jash Engineering, 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 (at) simplywallst.com.