What Can We Conclude About Maral Overseas' (NSE:MARALOVER) CEO Pay?

Shekhar Agarwal is the CEO of Maral Overseas Limited (NSE:MARALOVER), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Maral Overseas pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Maral Overseas

Comparing Maral Overseas Limited's CEO Compensation With the industry

According to our data, Maral Overseas Limited has a market capitalization of ₹1.2b, and paid its CEO total annual compensation worth ₹18m over the year to March 2020. Notably, that's a decrease of 24% over the year before. We note that the salary portion, which stands at ₹17.2m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹3.9m. This suggests that Shekhar Agarwal is paid more than the median for the industry. What's more, Shekhar Agarwal holds ₹65m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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. Maral Overseas has gone down a largely traditional route, paying Shekhar Agarwal a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Maral Overseas Limited's Growth

Over the last three years, Maral Overseas Limited has shrunk its earnings per share by 110% per year. Its revenue is down 26% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Maral Overseas Limited Been A Good Investment?

Given the total shareholder loss of 45% over three years, many shareholders in Maral Overseas Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Maral Overseas pays its CEO a majority of compensation through a salary. As we touched on above, Maral Overseas Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look good against shareholder returns, which have been negative for the past three years. 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 4 warning signs for Maral Overseas you should be aware of, and 2 of them are concerning.

Switching gears from Maral Overseas, 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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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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