How Much Does Mukand Engineers' (NSE:MUKANDENGG) CEO Make?

This article will reflect on the compensation paid to Kumar Jotwani who has served as CEO of Mukand Engineers Limited (NSE:MUKANDENGG) since 1998. 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 Mukand Engineers

Comparing Mukand Engineers Limited's CEO Compensation With the industry

Our data indicates that Mukand Engineers Limited has a market capitalization of ₹160m, and total annual CEO compensation was reported as ₹6.1m for the year to March 2020. That's a notable increase of 17% on last year. Notably, the salary which is ₹5.94m, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹4.8m. So it looks like Mukand Engineers compensates Kumar Jotwani in line with the median for the industry.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Mukand Engineers is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Mukand Engineers Limited's Growth Numbers

Mukand Engineers Limited has reduced its earnings per share by 39% a year over the last three years. It saw its revenue drop 50% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Mukand Engineers Limited Been A Good Investment?

Since shareholders would have lost about 74% over three years, some Mukand Engineers Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

Mukand Engineers pays its CEO a majority of compensation through a salary. As we touched on above, Mukand Engineers Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which shouldn't be ignored) in Mukand Engineers we think you should know about.

Important note: Mukand Engineers is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

If you decide to trade Mukand Engineers, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.