How Much is SPL Industries' (NSE:SPLIL) CEO Getting Paid?

The CEO of SPL Industries Limited (NSE:SPLIL) is Mukesh Aggarwal, 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.

View our latest analysis for SPL Industries

How Does Total Compensation For Mukesh Aggarwal Compare With Other Companies In The Industry?

According to our data, SPL Industries Limited has a market capitalization of ₹964m, and paid its CEO total annual compensation worth ₹6.3m over the year to March 2020. That's a modest increase of 4.8% on the prior year. We note that the salary portion, which stands at ₹6.00m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹3.9m. Accordingly, our analysis reveals that SPL Industries Limited pays Mukesh Aggarwal north of the industry median. Furthermore, Mukesh Aggarwal directly owns ₹194m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. SPL Industries has gone down a largely traditional route, paying Mukesh Aggarwal a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at SPL Industries Limited's Growth Numbers

Over the past three years, SPL Industries Limited has seen its earnings per share (EPS) grow by 48% per year. Its revenue is down 37% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 SPL Industries Limited Been A Good Investment?

SPL Industries Limited has served shareholders reasonably well, with a total return of 26% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Mukesh receives almost all of their compensation through a salary. As we noted earlier, SPL Industries pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth over three years is certainly impressive. We also think investor returns are steady over the same time period. So, considering the EPS growth we do not wish to criticize CEO compensation, though we'd recommend further research on management.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for SPL Industries that investors should look into moving forward.

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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