Stock Analysis

What Did Mirza International's (NSE:MIRZAINT) CEO Take Home Last Year?

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Rashid Mirza is the CEO of Mirza International Limited (NSE:MIRZAINT), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Mirza International.

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Comparing Mirza International Limited's CEO Compensation With the industry

According to our data, Mirza International Limited has a market capitalization of ₹6.4b, and paid its CEO total annual compensation worth ₹25m over the year to March 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is ₹24.0m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹4.1m. Hence, we can conclude that Rashid Mirza is remunerated higher than the industry median. What's more, Rashid Mirza holds ₹809m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary ₹24m ₹24m 97%
Other ₹707k ₹236k 3%
Total Compensation₹25m ₹24m100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Investors will find it interesting that Mirza International pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

NSEI:MIRZAINT CEO Compensation November 28th 2020

Mirza International Limited's Growth

Mirza International Limited has reduced its earnings per share by 46% a year over the last three years. It saw its revenue drop 17% over the last year.

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 Mirza International Limited Been A Good Investment?

Given the total shareholder loss of 61% over three years, many shareholders in Mirza International 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...

Rashid receives almost all of their compensation through a salary. As we noted earlier, Mirza International pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last 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.

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 5 warning signs for Mirza International (of which 2 are concerning!) 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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