How Is Eurotex Industries and Exports' (NSE:EUROTEXIND) CEO Paid Relative To Peers?

The CEO of Eurotex Industries and Exports Limited (NSE:EUROTEXIND) is Krishan Patodia, and this article examines the executive's compensation against the backdrop of overall company performance. 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 Eurotex Industries and Exports

How Does Total Compensation For Krishan Patodia Compare With Other Companies In The Industry?

At the time of writing, our data shows that Eurotex Industries and Exports Limited has a market capitalization of ₹73m, and reported total annual CEO compensation of ₹4.8m for the year to March 2020. Notably, that's a decrease of 24% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹2.1m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹3.8m. This suggests that Eurotex Industries and Exports remunerates its CEO largely in line with the industry average. What's more, Krishan Patodia holds ₹483k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Eurotex Industries and Exports sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Eurotex Industries and Exports Limited's Growth Numbers

Over the last three years, Eurotex Industries and Exports Limited has shrunk its earnings per share by 14% per year. It saw its revenue drop 74% over the last year.

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. 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 Eurotex Industries and Exports Limited Been A Good Investment?

Given the total shareholder loss of 77% over three years, many shareholders in Eurotex Industries and Exports Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Eurotex Industries and Exports 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. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

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 4 warning signs for Eurotex Industries and Exports you should be aware of, and 3 of them make us uncomfortable.

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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