A Look At Selan Exploration Technology's (NSE:SELAN) CEO Remuneration

The CEO of Selan Exploration Technology Limited (NSE:SELAN) is Rohit Kapur, 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 Selan Exploration Technology.

View our latest analysis for Selan Exploration Technology

How Does Total Compensation For Rohit Kapur Compare With Other Companies In The Industry?

According to our data, Selan Exploration Technology Limited has a market capitalization of ₹1.6b, and paid its CEO total annual compensation worth ₹20m over the year to March 2020. Notably, that's a decrease of 29% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹4.8m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹4.9m. Hence, we can conclude that Rohit Kapur is remunerated higher than the industry median. Furthermore, Rohit Kapur directly owns ₹9.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. Selan Exploration Technology pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Selan Exploration Technology Limited's Growth Numbers

Selan Exploration Technology Limited has seen its earnings per share (EPS) increase by 21% a year over the past three years. Its revenue is down 15% 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Selan Exploration Technology Limited Been A Good Investment?

With a three year total loss of 47% for the shareholders, Selan Exploration Technology Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Selan Exploration Technology pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 5 warning signs for Selan Exploration Technology that investors should look into moving forward.

Switching gears from Selan Exploration Technology, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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