What We Learned About Madhav Marbles and Granites' (NSE:MADHAV) CEO Pay

Madhav Doshi has been the CEO of Madhav Marbles and Granites Limited (NSE:MADHAV) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Madhav Marbles and Granites.

View our latest analysis for Madhav Marbles and Granites

Comparing Madhav Marbles and Granites Limited's CEO Compensation With the industry

According to our data, Madhav Marbles and Granites Limited has a market capitalization of ₹391m, and paid its CEO total annual compensation worth ₹6.0m over the year to March 2020. Notably, that's an increase of 14% over the year before. We note that the salary portion, which stands at ₹5.12m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹5.2m. This suggests that Madhav Marbles and Granites remunerates its CEO largely in line with the industry average. What's more, Madhav Doshi holds ₹33m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Madhav Marbles and Granites 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.

A Look at Madhav Marbles and Granites Limited's Growth Numbers

Madhav Marbles and Granites Limited has seen its earnings per share (EPS) increase by 8.4% a year over the past three years. Its revenue is down 13% over the previous year.

We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Madhav Marbles and Granites Limited Been A Good Investment?

With a three year total loss of 44% for the shareholders, Madhav Marbles and Granites Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Madhav Marbles and Granites pays its CEO in line with similar-sized companies belonging to the same industry. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat EPS growth. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Madhav deserves a raise.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Madhav Marbles and Granites (of which 2 can't be ignored!) 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. 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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