We Think Shareholders May Want To Consider A Review Of TruCap Finance Limited's (NSE:TRU) CEO Compensation Package

Key Insights

• TruCap Finance's Annual General Meeting to take place on 26th of September
• Total pay for CEO Rohanjeet Juneja includes ₹19.0m salary
• The overall pay is 543% above the industry average
• Over the past three years, TruCap Finance's EPS fell by 98% and over the past three years, the total loss to shareholders 81%

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The results at TruCap Finance Limited (NSE:TRU) have been quite disappointing recently and CEO Rohanjeet Juneja bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 26th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for TruCap Finance

How Does Total Compensation For Rohanjeet Juneja Compare With Other Companies In The Industry?

At the time of writing, our data shows that TruCap Finance Limited has a market capitalization of ₹1.4b, and reported total annual CEO compensation of ₹19m for the year to March 2025. Notably, that's an increase of 19% over the year before. In particular, the salary of ₹19.0m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Consumer Finance industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹3.0m. Hence, we can conclude that Rohanjeet Juneja is remunerated higher than the industry median. Furthermore, Rohanjeet Juneja directly owns ₹37m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 95% of total compensation represents salary, while the remainder of 5% is other remuneration. TruCap Finance has gone down a largely traditional route, paying Rohanjeet Juneja a high salary, giving it preference over non-salary benefits. 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.

A Look at TruCap Finance Limited's Growth Numbers

Over the last three years, TruCap Finance Limited has shrunk its earnings per share by 98% per year. Its revenue is down 66% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 TruCap Finance Limited Been A Good Investment?

Few TruCap Finance Limited shareholders would feel satisfied with the return of -81% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Rohanjeet receives almost all of their compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for TruCap Finance you should be aware of, and 1 of them is a bit concerning.

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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.