How Much Did Capital Trust's (NSE:CAPTRUST) CEO Pocket Last Year?

Yogen Khosla has been the CEO of Capital Trust Limited (NSE:CAPTRUST) since 2003, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Capital Trust pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Capital Trust

How Does Total Compensation For Yogen Khosla Compare With Other Companies In The Industry?

Our data indicates that Capital Trust Limited has a market capitalization of ₹1.1b, and total annual CEO compensation was reported as ₹15m for the year to March 2020. Notably, that's a decrease of 12% over the year before. Notably, the salary which is ₹12.1m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹1.2m. Accordingly, our analysis reveals that Capital Trust Limited pays Yogen Khosla north of the industry median. Moreover, Yogen Khosla also holds ₹410m worth of Capital Trust stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Capital Trust sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Capital Trust Limited's Growth Numbers

Over the last three years, Capital Trust Limited has shrunk its earnings per share by 21% per year. It saw its revenue drop 44% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Capital Trust Limited Been A Good Investment?

With a three year total loss of 87% for the shareholders, Capital Trust Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Capital Trust 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. 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. That's why we did our research, and identified 4 warning signs for Capital Trust (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Capital Trust, 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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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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