Our View On Industrial Investment Trust's (NSE:IITL) CEO Pay

The CEO of Industrial Investment Trust Limited (NSE:IITL) is Cumi Banerjee, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Industrial Investment Trust pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Industrial Investment Trust

Comparing Industrial Investment Trust Limited's CEO Compensation With the industry

At the time of writing, our data shows that Industrial Investment Trust Limited has a market capitalization of ₹1.2b, and reported total annual CEO compensation of ₹3.8m for the year to March 2020. That's a notable increase of 13% on last year. Notably, the salary of ₹3.8m is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹813k. Accordingly, our analysis reveals that Industrial Investment Trust Limited pays Cumi Banerjee north of the industry median.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Speaking on a company level, Industrial Investment Trust prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Industrial Investment Trust Limited's Growth

Industrial Investment Trust Limited's earnings per share (EPS) grew 29% per year over the last three years. It saw its revenue drop 22% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Industrial Investment Trust Limited Been A Good Investment?

Since shareholders would have lost about 47% over three years, some Industrial Investment Trust Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

Industrial Investment Trust pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Cumi is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Cumi is underpaid, in fact compensation is definitely on the higher side.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Industrial Investment Trust you should be aware of, and 1 of them is a bit concerning.

Switching gears from Industrial Investment 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.

If you’re looking to trade Industrial Investment Trust, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.