Shareholders May Not Be So Generous With Paisalo Digital Limited's (NSE:PAISALO) CEO Compensation And Here's Why

Under the guidance of CEO Sunil Agarwal, Paisalo Digital Limited (NSE:PAISALO) has performed reasonably well recently. As shareholders go into the upcoming AGM on 30 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Paisalo Digital

Comparing Paisalo Digital Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Paisalo Digital Limited has a market capitalization of ₹32b, and reported total annual CEO compensation of ₹44m for the year to March 2022. We note that's an increase of 16% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹44m.

In comparison with other companies in the industry with market capitalizations ranging from ₹16b to ₹65b, the reported median CEO total compensation was ₹32m. Accordingly, our analysis reveals that Paisalo Digital Limited pays Sunil Agarwal north of the industry median. Furthermore, Sunil Agarwal directly owns ₹3.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹44m	₹38m	100%
Other	-	-	-
Total Compensation	₹44m	₹38m	100%

Speaking on an industry level, nearly 96% of total compensation represents salary, while the remainder of 4% is other remuneration. At the company level, Paisalo Digital pays Sunil Agarwal solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Paisalo Digital Limited's Growth

Paisalo Digital Limited's earnings per share (EPS) grew 13% per year over the last three years. Its revenue is down 12% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Paisalo Digital Limited Been A Good Investment?

Most shareholders would probably be pleased with Paisalo Digital Limited for providing a total return of 74% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Paisalo Digital rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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. That's why we did our research, and identified 2 warning signs for Paisalo Digital (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.