Shareholders Would Not Be Objecting To Technocraft Industries (India) Limited's (NSE:TIIL) CEO Compensation And Here's Why

The performance at Technocraft Industries (India) Limited (NSE:TIIL) has been quite strong recently and CEO Navneet Saraf has played a role in it. Coming up to the next AGM on 26 September 2022, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Technocraft Industries (India)

How Does Total Compensation For Navneet Saraf Compare With Other Companies In The Industry?

According to our data, Technocraft Industries (India) Limited has a market capitalization of ₹21b, and paid its CEO total annual compensation worth ₹15m over the year to March 2022. This was the same as last year. Notably, the salary of ₹15m is the entirety of the CEO compensation.

For comparison, other companies in the same industry with market capitalizations ranging between ₹8.0b and ₹32b had a median total CEO compensation of ₹15m. This suggests that Technocraft Industries (India) remunerates its CEO largely in line with the industry average. Moreover, Navneet Saraf also holds ₹1.6b worth of Technocraft Industries (India) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	₹15m	₹15m	100%
Other	-	-	-
Total Compensation	₹15m	₹15m	100%

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9% is other remuneration. At the company level, Technocraft Industries (India) pays Navneet Saraf solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Technocraft Industries (India) Limited's Growth

Technocraft Industries (India) Limited has seen its earnings per share (EPS) increase by 33% a year over the past three years. In the last year, its revenue is up 43%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Technocraft Industries (India) Limited Been A Good Investment?

We think that the total shareholder return of 102%, over three years, would leave most Technocraft Industries (India) Limited shareholders smiling. 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...

Technocraft Industries (India) rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Technocraft Industries (India) that investors should look into moving forward.

Switching gears from Technocraft Industries (India), if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.