Shareholders Will Probably Not Have Any Issues With KEC International Limited's (NSE:KEC) CEO Compensation

Under the guidance of CEO Vimal Kejriwal, KEC International Limited (NSE:KEC) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 04 August 2021. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for KEC International

How Does Total Compensation For Vimal Kejriwal Compare With Other Companies In The Industry?

According to our data, KEC International Limited has a market capitalization of ₹109b, and paid its CEO total annual compensation worth ₹72m over the year to March 2021. That's a modest increase of 5.6% on the prior year. We note that the salary portion, which stands at ₹49.3m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₹75b to ₹238b, the reported median CEO total compensation was ₹80m. So it looks like KEC International compensates Vimal Kejriwal in line with the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	₹49m	₹50m	69%
Other	₹23m	₹19m	31%
Total Compensation	₹72m	₹68m	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. It's interesting to note that KEC International allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at KEC International Limited's Growth Numbers

KEC International Limited has seen its earnings per share (EPS) increase by 6.4% a year over the past three years. Its revenue is up 9.6% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 KEC International Limited Been A Good Investment?

With a total shareholder return of 32% over three years, KEC International Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for KEC International that investors should think about before committing capital to this stock.

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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