The CEO Of TeamLease Services Limited (NSE:TEAMLEASE) Might See A Pay Rise On The Horizon

Shareholders will probably not be disappointed by the robust results at TeamLease Services Limited (NSE:TEAMLEASE) recently and they will be keeping this in mind as they go into the AGM on 03 September 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for TeamLease Services

Comparing TeamLease Services Limited's CEO Compensation With the industry

Our data indicates that TeamLease Services Limited has a market capitalization of ₹67b, and total annual CEO compensation was reported as ₹5.5m for the year to March 2021. That's a notable decrease of 50% on last year. We note that the salary portion, which stands at ₹3.57m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₹30b to ₹119b, the reported median CEO total compensation was ₹77m. This suggests that Ashok Kumar Nedurumalli is paid below the industry median.

Component	2021	2020	Proportion (2021)
Salary	₹3.6m	₹7.1m	65%
Other	₹1.9m	₹3.9m	35%
Total Compensation	₹5.5m	₹11m	100%

On an industry level, around 95% of total compensation represents salary and 5% is other remuneration. TeamLease Services sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 TeamLease Services Limited's Growth Numbers

TeamLease Services Limited's earnings per share (EPS) grew 3.5% per year over the last three years. Revenue was pretty flat on last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 TeamLease Services Limited Been A Good Investment?

We think that the total shareholder return of 51%, over three years, would leave most TeamLease Services Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for TeamLease Services that investors should look into moving forward.

Important note: TeamLease Services 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.

When trading TeamLease Services or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.