A Quick Analysis On Satin Creditcare Network's (NSE:SATIN) CEO Compensation

This article will reflect on the compensation paid to Harvinder Singh who has served as CEO of Satin Creditcare Network Limited (NSE:SATIN) since 2010. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Satin Creditcare Network.

View our latest analysis for Satin Creditcare Network

How Does Total Compensation For Harvinder Singh Compare With Other Companies In The Industry?

According to our data, Satin Creditcare Network Limited has a market capitalization of ₹5.4b, and paid its CEO total annual compensation worth ₹29m over the year to March 2020. We note that's an increase of 56% above last year. We note that the salary portion, which stands at ₹22.7m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹715k. Accordingly, our analysis reveals that Satin Creditcare Network Limited pays Harvinder Singh 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. Satin Creditcare Network pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Satin Creditcare Network Limited's Growth

Satin Creditcare Network Limited's earnings per share (EPS) grew 52% per year over the last three years. Its revenue is down 1.2% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Satin Creditcare Network Limited Been A Good Investment?

Given the total shareholder loss of 83% over three years, many shareholders in Satin Creditcare Network Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Satin Creditcare Network 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. 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). Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 5 warning signs for Satin Creditcare Network you should be aware of, and 1 of them is concerning.

Important note: Satin Creditcare Network is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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