How Much Did Weizmann's (NSE:WEIZMANIND) CEO Pocket Last Year?

This article will reflect on the compensation paid to Neelkamal Siraj who has served as CEO of Weizmann Limited (NSE:WEIZMANIND) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Weizmann.

View our latest analysis for Weizmann

Comparing Weizmann Limited's CEO Compensation With the industry

At the time of writing, our data shows that Weizmann Limited has a market capitalization of ₹778m, and reported total annual CEO compensation of ₹5.0m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹5.0m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹3.6m. Hence, we can conclude that Neelkamal Siraj is remunerated higher than the industry median.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, Weizmann pays Neelkamal Siraj solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Weizmann Limited's Growth

Weizmann Limited has seen its earnings per share (EPS) increase by 25% a year over the past three years. It saw its revenue drop 6.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Weizmann Limited Been A Good Investment?

We think that the total shareholder return of 78%, over three years, would leave most Weizmann Limited shareholders smiling. 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...

Weizmann rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Weizmann pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Neelkamal's performance creates value for the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Weizmann (1 can't be ignored!) that you should be aware of before investing here.

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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