How Does Reliance Industrial Infrastructure's (NSE:RIIL) CEO Salary Compare to Peers?

The CEO of Reliance Industrial Infrastructure Limited (NSE:RIIL) is Dilipkumar Dherai, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Reliance Industrial Infrastructure.

Check out our latest analysis for Reliance Industrial Infrastructure

How Does Total Compensation For Dilipkumar Dherai Compare With Other Companies In The Industry?

Our data indicates that Reliance Industrial Infrastructure Limited has a market capitalization of ₹5.9b, and total annual CEO compensation was reported as ₹11m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at ₹10.3m 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 ₹3.2m. This suggests that Dilipkumar Dherai is paid more than the median for the industry.

On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. Reliance Industrial Infrastructure pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Reliance Industrial Infrastructure Limited's Growth Numbers

Over the last three years, Reliance Industrial Infrastructure Limited has shrunk its earnings per share by 5.0% per year. It saw its revenue drop 28% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Reliance Industrial Infrastructure Limited Been A Good Investment?

Given the total shareholder loss of 27% over three years, many shareholders in Reliance Industrial Infrastructure Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Reliance Industrial Infrastructure pays its CEO a majority of compensation through a salary. As we touched on above, Reliance Industrial Infrastructure 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. Disappointingly, share price gains over the last three years have failed to materialize. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Reliance Industrial Infrastructure you should be aware of, and 1 of them is significant.

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. 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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