It Looks Like The CEO Of Skipper Limited (NSE:SKIPPER) May Be Underpaid Compared To Peers

Key Insights

• Skipper will host its Annual General Meeting on 19th of September
• Salary of ₹14.4m is part of CEO Sajan Bansal's total remuneration
• Total compensation is 45% below industry average
• Skipper's EPS grew by 34% over the past three years while total shareholder return over the past three years was 352%

The impressive results at Skipper Limited (NSE:SKIPPER) recently will be great news for shareholders. At the upcoming AGM on 19th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Skipper

How Does Total Compensation For Sajan Bansal Compare With Other Companies In The Industry?

Our data indicates that Skipper Limited has a market capitalization of ₹22b, and total annual CEO compensation was reported as ₹14m for the year to March 2023. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹14m.

For comparison, other companies in the Indian Construction industry with market capitalizations ranging between ₹8.3b and ₹33b had a median total CEO compensation of ₹26m. That is to say, Sajan Bansal is paid under the industry median. Moreover, Sajan Bansal also holds ₹4.7b worth of Skipper stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹14m	₹14m	100%
Other	-	-	-
Total Compensation	₹14m	₹14m	100%

Talking in terms of the industry, salary represented approximately 96% of total compensation out of all the companies we analyzed, while other remuneration made up 4% of the pie. Speaking on a company level, Skipper 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.

A Look at Skipper Limited's Growth Numbers

Skipper Limited's earnings per share (EPS) grew 34% per year over the last three years. It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Skipper Limited Been A Good Investment?

Boasting a total shareholder return of 352% over three years, Skipper Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Skipper pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Skipper that investors should think about before committing capital to this stock.

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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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.