Does Nalwa Sons Investments' (NSE:NSIL) CEO Salary Compare Well With The Performance Of The Company?

Rakesh Garg has been the CEO of Nalwa Sons Investments Limited (NSE:NSIL) since 2017, and this article will examine the executive's compensation 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 Nalwa Sons Investments.

See our latest analysis for Nalwa Sons Investments

Comparing Nalwa Sons Investments Limited's CEO Compensation With the industry

Our data indicates that Nalwa Sons Investments Limited has a market capitalization of ₹5.5b, and total annual CEO compensation was reported as ₹6.8m for the year to March 2020. Notably, that's an increase of 23% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.8m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹810k. Accordingly, our analysis reveals that Nalwa Sons Investments Limited pays Rakesh Garg north of the industry median.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. On a company level, Nalwa Sons Investments prefers to reward its CEO through a salary, opting not to pay Rakesh Garg 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 Nalwa Sons Investments Limited's Growth Numbers

Nalwa Sons Investments Limited's earnings per share (EPS) grew 49% per year over the last three years. Its revenue is up 21% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing 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 Nalwa Sons Investments Limited Been A Good Investment?

Since shareholders would have lost about 5.3% over three years, some Nalwa Sons Investments Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Nalwa Sons Investments rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Nalwa Sons Investments pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Rakesh is underpaid, in fact compensation is definitely on the higher side.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for Nalwa Sons Investments that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

When trading Nalwa Sons Investments or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on 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.