What Did KEC International's (NSE:KEC) CEO Take Home Last Year?

Vimal Kejriwal has been the CEO of KEC International Limited (NSE:KEC) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out 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 ₹92b, and paid its CEO total annual compensation worth ₹68m over the year to March 2020. That's a notable increase of 10% on last year. Notably, the salary which is ₹49.5m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from ₹73b to ₹234b, the reported median CEO total compensation was ₹68m. From this we gather that Vimal Kejriwal is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. 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 15% a year over the past three years. In the last year, its revenue is up 4.2%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has KEC International Limited Been A Good Investment?

KEC International Limited has generated a total shareholder return of 0.7% over three years, so most shareholders wouldn't be too disappointed. 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.

To Conclude...

As previously discussed, Vimal is compensated close to the median for companies of its size, and which belong to the same industry. But EPS growth over the last three years has been impressive, although the same cannot be said for shareholder returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for KEC International that you should be aware of before investing.

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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