Here's Why It's Unlikely That Uniinfo Telecom Services Limited's (NSE:UNIINFO) CEO Will See A Pay Rise This Year

Shareholders will probably not be too impressed with the underwhelming results at Uniinfo Telecom Services Limited (NSE:UNIINFO) recently. At the upcoming AGM on 29 September 2022, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Uniinfo Telecom Services

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

At the time of writing, our data shows that Uniinfo Telecom Services Limited has a market capitalization of ₹265m, and reported total annual CEO compensation of ₹6.0m for the year to March 2022. This was the same as last year. Notably, the salary of ₹6.0m is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹3.1m. Hence, we can conclude that Kishore Kumar Bhuradia is remunerated higher than the industry median. What's more, Kishore Kumar Bhuradia holds ₹126m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₹6.0m	₹6.0m	100%
Other	-	-	-
Total Compensation	₹6.0m	₹6.0m	100%

Speaking on an industry level, nearly 97% of total compensation represents salary, while the remainder of 3% is other remuneration. Speaking on a company level, Uniinfo Telecom Services 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 Uniinfo Telecom Services Limited's Growth Numbers

Over the last three years, Uniinfo Telecom Services Limited has shrunk its earnings per share by 39% per year. In the last year, its revenue is down 12%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Uniinfo Telecom Services Limited Been A Good Investment?

Given the total shareholder loss of 1.0% over three years, many shareholders in Uniinfo Telecom Services Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Uniinfo Telecom Services pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Uniinfo Telecom Services you should be aware of, and 2 of them don't sit too well with us.

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.