How Much is SecUR Credentials' (NSE:SECURCRED) CEO Getting Paid?

This article will reflect on the compensation paid to Rahul Belwalkar who has served as CEO of SecUR Credentials Limited (NSE:SECURCRED) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for SecUR Credentials

How Does Total Compensation For Rahul Belwalkar Compare With Other Companies In The Industry?

Our data indicates that SecUR Credentials Limited has a market capitalization of ₹83m, and total annual CEO compensation was reported as ₹4.9m for the year to March 2020. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.9m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹4.2m. From this we gather that Rahul Belwalkar is paid around the median for CEOs in the industry. What's more, Rahul Belwalkar holds ₹3.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. On a company level, SecUR Credentials prefers to reward its CEO through a salary, opting not to pay Rahul Belwalkar through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

SecUR Credentials Limited's Growth

Over the last three years, SecUR Credentials Limited has shrunk its earnings per share by 49% per year. In the last year, its revenue is down 8.8%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SecUR Credentials Limited Been A Good Investment?

With a three year total loss of 93% for the shareholders, SecUR Credentials Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

SecUR Credentials pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Rahul is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for SecUR Credentials you should be aware of, and 2 of them shouldn't be ignored.

Important note: SecUR Credentials is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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