How Much Did JMC Projects (India)'s (NSE:JMCPROJECT) CEO Pocket Last Year?

Shailendra Tripathi became the CEO of JMC Projects (India) Limited (NSE:JMCPROJECT) in 2013, and we think it's a good time to look at 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 JMC Projects (India).

See our latest analysis for JMC Projects (India)

Comparing JMC Projects (India) Limited's CEO Compensation With the industry

Our data indicates that JMC Projects (India) Limited has a market capitalization of ₹7.9b, and total annual CEO compensation was reported as ₹34m for the year to March 2020. That's a slightly lower by 4.4% over the previous year. Notably, the salary which is ₹19.6m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹6.0m. Hence, we can conclude that Shailendra Tripathi is remunerated higher than the industry median.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. JMC Projects (India) pays a modest slice of remuneration through salary, as compared to the broader industry. 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.

JMC Projects (India) Limited's Growth

JMC Projects (India) Limited has seen its earnings per share (EPS) increase by 54% a year over the past three years. In the last year, its revenue is up 13%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has JMC Projects (India) Limited Been A Good Investment?

Since shareholders would have lost about 29% over three years, some JMC Projects (India) Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Shailendra is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the earnings per share growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we'd stop short of calling it inappropriate, we think Shailendra is earning a very handsome sum.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for JMC Projects (India) (1 is concerning!) that you should be aware of before investing here.

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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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.
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