How Much Is Bang Overseas Limited (NSE:BANG) CEO Getting Paid?

This article will reflect on the compensation paid to Brijgopal Bang who has served as CEO of Bang Overseas Limited (NSE:BANG) since 2006. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bang Overseas.

Check out our latest analysis for Bang Overseas

How Does Total Compensation For Brijgopal Bang Compare With Other Companies In The Industry?

Our data indicates that Bang Overseas Limited has a market capitalization of ₹365m, and total annual CEO compensation was reported as ₹4.4m for the year to March 2020. We note that's an increase of 16% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.4m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹3.6m. So it looks like Bang Overseas compensates Brijgopal Bang in line with the median for the industry. Furthermore, Brijgopal Bang directly owns ₹46m worth of shares in the company, implying that they are deeply invested in the company's success.

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. At the company level, Bang Overseas pays Brijgopal Bang solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Bang Overseas Limited's Growth Numbers

Over the last three years, Bang Overseas Limited has shrunk its earnings per share by 16% per year. In the last year, its revenue is down 43%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Bang Overseas Limited Been A Good Investment?

With a three year total loss of 14% for the shareholders, Bang Overseas Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Bang Overseas pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Bang Overseas Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Bang Overseas (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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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