Here's What We Learned About The CEO Pay At Mold-Tek Technologies Limited (NSE:MOLDTECH)

The CEO of Mold-Tek Technologies Limited (NSE:MOLDTECH) is Lakshmana Janumahanti, and this article examines 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 Mold-Tek Technologies.

Check out our latest analysis for Mold-Tek Technologies

How Does Total Compensation For Lakshmana Janumahanti Compare With Other Companies In The Industry?

At the time of writing, our data shows that Mold-Tek Technologies Limited has a market capitalization of ₹1.5b, and reported total annual CEO compensation of ₹7.4m for the year to March 2020. Notably, that's an increase of 26% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹2.8m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹4.8m. Accordingly, our analysis reveals that Mold-Tek Technologies Limited pays Lakshmana Janumahanti north of the industry median. Moreover, Lakshmana Janumahanti also holds ₹119m worth of Mold-Tek Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Mold-Tek Technologies sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Mold-Tek Technologies Limited's Growth Numbers

Over the past three years, Mold-Tek Technologies Limited has seen its earnings per share (EPS) grow by 14% per year. It saw its revenue drop 6.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Mold-Tek Technologies Limited Been A Good Investment?

Since shareholders would have lost about 24% over three years, some Mold-Tek Technologies Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Mold-Tek Technologies Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Mold-Tek Technologies 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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