What Does TAJGVK Hotels & Resorts' (NSE:TAJGVK) CEO Pay Reveal?

The CEO of TAJGVK Hotels & Resorts Limited (NSE:TAJGVK) is G. Reddy, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether TAJGVK Hotels & Resorts pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for TAJGVK Hotels & Resorts

Comparing TAJGVK Hotels & Resorts Limited's CEO Compensation With the industry

At the time of writing, our data shows that TAJGVK Hotels & Resorts Limited has a market capitalization of ₹8.3b, and reported total annual CEO compensation of ₹40m for the year to March 2020. We note that's an increase of 9.5% above last year. Notably, the salary of ₹40m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹2.6m. Hence, we can conclude that G. Reddy is remunerated higher than the industry median. Moreover, G. Reddy also holds ₹1.0b worth of TAJGVK Hotels & Resorts stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, TAJGVK Hotels & Resorts prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at TAJGVK Hotels & Resorts Limited's Growth Numbers

TAJGVK Hotels & Resorts Limited has reduced its earnings per share by 7.8% a year over the last three years. Its revenue is down 44% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet 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 TAJGVK Hotels & Resorts Limited Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in TAJGVK Hotels & Resorts Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

TAJGVK Hotels & Resorts rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, TAJGVK Hotels & Resorts pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. Arguably worse, we've been waiting for positive EPS growth for the last three years. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for TAJGVK Hotels & Resorts that you should be aware of before investing.

Switching gears from TAJGVK Hotels & Resorts, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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