Orbit Exports Limited's (NSE:ORBTEXP) CEO Compensation Is Looking A Bit Stretched At The Moment

CEO Pankaj Seth has done a decent job of delivering relatively good performance at Orbit Exports Limited (NSE:ORBTEXP) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Orbit Exports

Comparing Orbit Exports Limited's CEO Compensation With The Industry

Our data indicates that Orbit Exports Limited has a market capitalization of ₹4.5b, and total annual CEO compensation was reported as ₹20m for the year to March 2022. That's a notable increase of 99% on last year. We note that the salary portion, which stands at ₹13.3m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹3.6m. Hence, we can conclude that Pankaj Seth is remunerated higher than the industry median. Moreover, Pankaj Seth also holds ₹1.9b worth of Orbit Exports stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	₹13m	₹6.6m	66%
Other	₹6.7m	₹3.4m	34%
Total Compensation	₹20m	₹10m	100%

On an industry level, around 100% of total compensation represents salary and 0.2268% is other remuneration. Orbit Exports sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Orbit Exports Limited's Growth

Orbit Exports Limited's earnings per share (EPS) grew 4.7% per year over the last three years. It achieved revenue growth of 99% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Orbit Exports Limited Been A Good Investment?

Boasting a total shareholder return of 64% over three years, Orbit Exports Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Orbit Exports you should be aware of, and 1 of them is a bit concerning.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.