How Much Is Kewal Kiran Clothing Limited (NSE:KKCL) CEO Getting Paid?

Kewalchand Jain became the CEO of Kewal Kiran Clothing Limited (NSE:KKCL) in 2005, and we think it's a good time to look at 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 Kewal Kiran Clothing.

View our latest analysis for Kewal Kiran Clothing

How Does Total Compensation For Kewalchand Jain Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kewal Kiran Clothing Limited has a market capitalization of ₹11b, and reported total annual CEO compensation of ₹8.0m for the year to March 2020. That is, the compensation was roughly the same as last year. In particular, the salary of ₹7.50m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from ₹7.3b to ₹29b, we found that the median CEO total compensation was ₹20m. Accordingly, Kewal Kiran Clothing pays its CEO under the industry median. Furthermore, Kewalchand Jain directly owns ₹650m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Kewal Kiran Clothing is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Kewal Kiran Clothing Limited's Growth

Over the last three years, Kewal Kiran Clothing Limited has shrunk its earnings per share by 28% per year. Its revenue is down 41% over the previous year.

Overall this is not a very positive result for shareholders. 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. 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 Kewal Kiran Clothing Limited Been A Good Investment?

Since shareholders would have lost about 35% over three years, some Kewal Kiran Clothing Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Kewalchand is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Kewalchand is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

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 3 warning signs for Kewal Kiran Clothing that investors should think about before committing capital to this stock.

Switching gears from Kewal Kiran Clothing, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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