How Does Kaya's (NSE:KAYA) CEO Salary Compare to Peers?

Rajiv Nair has been the CEO of Kaya Limited (NSE:KAYA) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Kaya pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Kaya

Comparing Kaya Limited's CEO Compensation With the industry

Our data indicates that Kaya Limited has a market capitalization of ₹4.1b, and total annual CEO compensation was reported as ₹16m for the year to March 2020. We note that's an increase of 14% above last year. Notably, the salary of ₹16m is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below ₹14b, we found that the median total CEO compensation was ₹2.4m. Accordingly, our analysis reveals that Kaya Limited pays Rajiv Nair north of the industry median.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. On a company level, Kaya prefers to reward its CEO through a salary, opting not to pay Rajiv Nair through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Kaya Limited's Growth

Over the last three years, Kaya Limited has shrunk its earnings per share by 61% per year. Its revenue is down 33% over the previous year.

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 Kaya Limited Been A Good Investment?

With a three year total loss of 72% for the shareholders, Kaya Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Kaya rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Rajiv is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. What's equally worrying is that the company isn't growing by our analysis. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Kaya (1 is a bit unpleasant!) that you should be aware of before investing here.

Important note: Kaya 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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