How Much is Byke Hospitality's (NSE:BYKE) CEO Getting Paid?

Anil Patodia is the CEO of The Byke Hospitality Limited (NSE:BYKE), 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 Byke Hospitality.

See our latest analysis for Byke Hospitality

How Does Total Compensation For Anil Patodia Compare With Other Companies In The Industry?

According to our data, The Byke Hospitality Limited has a market capitalization of ₹555m, and paid its CEO total annual compensation worth ₹6.0m over the year to March 2020. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.0m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹2.9m. Hence, we can conclude that Anil Patodia is remunerated higher than the industry median. Furthermore, Anil Patodia directly owns ₹47m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 97% of total compensation represents salary, while the remainder of 3.0% is other remuneration. On a company level, Byke Hospitality prefers to reward its CEO through a salary, opting not to pay Anil Patodia through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at The Byke Hospitality Limited's Growth Numbers

Over the last three years, The Byke Hospitality Limited has shrunk its earnings per share by 101% per year. It saw its revenue drop 38% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has The Byke Hospitality Limited Been A Good Investment?

Given the total shareholder loss of 91% over three years, many shareholders in The Byke Hospitality Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Byke Hospitality pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, The Byke Hospitality 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. This doesn't look good against shareholder returns, which have been negative for the past 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Byke Hospitality that investors should look into moving forward.

Important note: Byke Hospitality is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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