How Much Is Security and Intelligence Services (India) Limited (NSE:SIS) CEO Getting Paid?

This article will reflect on the compensation paid to Rituraj Sinha who has served as CEO of Security and Intelligence Services (India) Limited (NSE:SIS) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Security and Intelligence Services (India).

Check out our latest analysis for Security and Intelligence Services (India)

Comparing Security and Intelligence Services (India) Limited's CEO Compensation With the industry

Our data indicates that Security and Intelligence Services (India) Limited has a market capitalization of ₹59b, and total annual CEO compensation was reported as ₹9.6m for the year to March 2020. That's a modest increase of 7.3% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹4.4m.

For comparison, other companies in the same industry with market capitalizations ranging between ₹30b and ₹118b had a median total CEO compensation of ₹22m. Accordingly, Security and Intelligence Services (India) pays its CEO under the industry median. Moreover, Rituraj Sinha also holds ₹6.7b worth of Security and Intelligence Services (India) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Security and Intelligence Services (India) pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Security and Intelligence Services (India) Limited's Growth

Security and Intelligence Services (India) Limited's earnings per share (EPS) grew 26% per year over the last three years. In the last year, its revenue is up 15%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Security and Intelligence Services (India) Limited Been A Good Investment?

Security and Intelligence Services (India) Limited has generated a total shareholder return of 4.0% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As previously discussed, Rituraj is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Meanwhile, EPS growth has been rock solid for the past three years. However, shareholder returns have failed to show the same level of growth. Shareholder returns could be better but we're pleased with the positive EPS growth. As a result of these considerations, CEO compensation seems quite appropriate.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Security and Intelligence Services (India) that investors should think about before committing capital to this stock.

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. 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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