What Did Manugraph India's (NSE:MANUGRAPH) CEO Take Home Last Year?

Sanjay Shah is the CEO of Manugraph India Limited (NSE:MANUGRAPH), and in this article, we analyze the executive's compensation package 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.

See our latest analysis for Manugraph India

How Does Total Compensation For Sanjay Shah Compare With Other Companies In The Industry?

Our data indicates that Manugraph India Limited has a market capitalization of ₹374m, and total annual CEO compensation was reported as ₹12m for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary of ₹12m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹4.5m. This suggests that Sanjay Shah is paid more than the median for the industry. What's more, Sanjay Shah holds ₹51m 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. Speaking on a company level, Manugraph India prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Manugraph India Limited's Growth

Over the last three years, Manugraph India Limited has shrunk its earnings per share by 42% per year. It saw its revenue drop 63% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Manugraph India Limited Been A Good Investment?

With a three year total loss of 75% for the shareholders, Manugraph India Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

Manugraph India rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Manugraph India pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, EPS growth has also been negative during this period. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO 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. We identified 4 warning signs for Manugraph India (3 are potentially serious!) that you should be aware of before investing here.

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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