We Take A Look At Why MSTC Limited's (NSE:MSTCLTD) CEO Has Earned Their Pay Packet

The performance at MSTC Limited (NSE:MSTCLTD) has been quite strong recently and CEO Surinder Gupta has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 27 September 2022. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for MSTC

How Does Total Compensation For Surinder Gupta Compare With Other Companies In The Industry?

According to our data, MSTC Limited has a market capitalization of ₹20b, and paid its CEO total annual compensation worth ₹6.6m over the year to March 2022. Notably, that's an increase of 29% over the year before. Notably, the salary which is ₹5.35m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₹8.0b to ₹32b, we found that the median CEO total compensation was ₹6.6m. So it looks like MSTC compensates Surinder Gupta in line with the median for the industry.

Component	2022	2021	Proportion (2022)
Salary	₹5.4m	₹4.8m	81%
Other	₹1.3m	₹390k	19%
Total Compensation	₹6.6m	₹5.2m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. In MSTC's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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 MSTC Limited's Growth Numbers

MSTC Limited has seen its earnings per share (EPS) increase by 66% a year over the past three years. In the last year, its revenue is down 16%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 MSTC Limited Been A Good Investment?

We think that the total shareholder return of 188%, over three years, would leave most MSTC Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for MSTC that investors should look into moving forward.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.