What Can We Conclude About Salasar Techno Engineering's (NSE:SALASAR) CEO Pay?

Alok Kumar has been the CEO of Salasar Techno Engineering Limited (NSE:SALASAR) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Salasar Techno Engineering pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Salasar Techno Engineering

How Does Total Compensation For Alok Kumar Compare With Other Companies In The Industry?

Our data indicates that Salasar Techno Engineering Limited has a market capitalization of ₹2.7b, and total annual CEO compensation was reported as ₹8.0m for the year to March 2020. Notably, that's an increase of 10.0% over the year before. Notably, the salary of ₹8.0m is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹5.7m. Accordingly, our analysis reveals that Salasar Techno Engineering Limited pays Alok Kumar north of the industry median. What's more, Alok Kumar holds ₹341m 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. On a company level, Salasar Techno Engineering prefers to reward its CEO through a salary, opting not to pay Alok Kumar through 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 Salasar Techno Engineering Limited's Growth Numbers

Over the last three years, Salasar Techno Engineering Limited has shrunk its earnings per share by 21% per year. In the last year, its revenue is down 35%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Salasar Techno Engineering Limited Been A Good Investment?

With a three year total loss of 27% for the shareholders, Salasar Techno Engineering Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Salasar Techno Engineering rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Alok is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. Arguably worse, we've been waiting for positive EPS growth for the last three years. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Salasar Techno Engineering (1 is a bit concerning!) 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.

If you decide to trade Salasar Techno Engineering, 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.