The CEO of Repro India Limited (NSE:REPRO) is Sanjeev Vohra, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Repro India.
View our latest analysis for Repro India
How Does Total Compensation For Sanjeev Vohra Compare With Other Companies In The Industry?
According to our data, Repro India Limited has a market capitalization of ₹4.4b, and paid its CEO total annual compensation worth ₹5.5m over the year to March 2020. We note that's a decrease of 8.3% compared to last year. In particular, the salary of ₹5.51m, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹2.3m. Hence, we can conclude that Sanjeev Vohra is remunerated higher than the industry median. What's more, Sanjeev Vohra holds ₹58m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | ₹5.5m | ₹6.0m | 99% |
| Other | ₹36k | ₹40k | 1% |
| Total Compensation | ₹5.5m | ₹6.0m | 100% |
Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Repro India has gone down a largely traditional route, paying Sanjeev Vohra a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Repro India Limited's Growth Numbers
Over the last three years, Repro India Limited has shrunk its earnings per share by 9.9% per year. Its revenue is down 48% over the previous year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Repro India Limited Been A Good Investment?
Given the total shareholder loss of 47% over three years, many shareholders in Repro India Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Sanjeev receives almost all of their compensation through a salary. As we touched on above, Repro India Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. 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.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Repro India that investors should look into moving forward.
Switching gears from Repro 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. 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.
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About NSEI:REPRO
Excellent balance sheet and slightly overvalued.
