How Does AYM Syntex's (NSE:AYMSYNTEX) CEO Pay Compare With Company Performance?

The CEO of AYM Syntex Limited (NSE:AYMSYNTEX) is Abhishek Mandawewala, 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 AYM Syntex.

View our latest analysis for AYM Syntex

Comparing AYM Syntex Limited's CEO Compensation With the industry

Our data indicates that AYM Syntex Limited has a market capitalization of ₹2.3b, and total annual CEO compensation was reported as ₹7.4m for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is ₹7.00m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹3.7m. Accordingly, our analysis reveals that AYM Syntex Limited pays Abhishek Mandawewala north of the industry median.

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. AYM Syntex has gone down a largely traditional route, paying Abhishek Mandawewala a high salary, giving it preference over 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.

A Look at AYM Syntex Limited's Growth Numbers

Over the last three years, AYM Syntex Limited has shrunk its earnings per share by 38% per year. In the last year, its revenue is down 20%.

Few shareholders would be pleased to read that EPS have declined. 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 AYM Syntex Limited Been A Good Investment?

Since shareholders would have lost about 24% over three years, some AYM Syntex Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Abhishek receives almost all of their compensation through a salary. As previously discussed, Abhishek is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. To make matters worse, EPS growth has also been negative during this period. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 6 warning signs for AYM Syntex you should be aware of, and 2 of them are potentially serious.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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