How Much Is Vardhman Acrylics Limited (NSE:VARDHACRLC) CEO Getting Paid?

Bal Choudhary has been the CEO of Vardhman Acrylics Limited (NSE:VARDHACRLC) since 2008, and this article will examine the executive's compensation 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 Vardhman Acrylics.

Check out our latest analysis for Vardhman Acrylics

Comparing Vardhman Acrylics Limited's CEO Compensation With the industry

Our data indicates that Vardhman Acrylics Limited has a market capitalization of ₹2.9b, and total annual CEO compensation was reported as ₹14m for the year to March 2020. That's a notable increase of 58% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹4.4m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹3.6m. Hence, we can conclude that Bal Choudhary is remunerated higher than the industry median.

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. In Vardhman Acrylics' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Vardhman Acrylics Limited's Growth

Vardhman Acrylics Limited has reduced its earnings per share by 3.9% a year over the last three years. In the last year, its revenue is down 22%.

Few shareholders would be pleased to read that EPS have declined. 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. 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 Vardhman Acrylics Limited Been A Good Investment?

With a three year total loss of 12% for the shareholders, Vardhman Acrylics Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, Vardhman Acrylics 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. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. What's equally worrying is that the company isn't growing by our analysis. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Vardhman Acrylics you should be aware of, and 1 of them is a bit concerning.

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.

When trading Vardhman Acrylics or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.