We Discuss Why Jay Shree Tea & Industries Limited's (NSE:JAYSREETEA) CEO Compensation May Be Closely Reviewed
Key Insights
- Jay Shree Tea & Industries will host its Annual General Meeting on 9th of August
- CEO Jayashree Mohta's total compensation includes salary of ā¹10.2m
- The total compensation is 199% higher than the average for the industry
- Jay Shree Tea & Industries' EPS declined by 19% over the past three years while total shareholder loss over the past three years was 2.2%
Shareholders will probably not be too impressed with the underwhelming results at Jay Shree Tea & Industries Limited (NSE:JAYSREETEA) recently. At the upcoming AGM on 9th of August, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Jay Shree Tea & Industries
Comparing Jay Shree Tea & Industries Limited's CEO Compensation With The Industry
Our data indicates that Jay Shree Tea & Industries Limited has a market capitalization of ā¹3.6b, and total annual CEO compensation was reported as ā¹10m for the year to March 2024. This was the same as last year. Notably, the salary of ā¹10m is the entirety of the CEO compensation.
In comparison with other companies in the Indian Food industry with market capitalizations under ā¹17b, the reported median total CEO compensation was ā¹3.4m. This suggests that Jayashree Mohta is paid more than the median for the industry. Furthermore, Jayashree Mohta directly owns ā¹131m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | ā¹10m | ā¹10m | 100% |
| Other | - | - | - |
| Total Compensation | ā¹10m | ā¹10m | 100% |
On an industry level, around 100% of total compensation represents salary and 0.4071893% is other remuneration. On a company level, Jay Shree Tea & Industries prefers to reward its CEO through a salary, opting not to pay Jayashree Mohta through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Jay Shree Tea & Industries Limited's Growth
Over the last three years, Jay Shree Tea & Industries Limited has shrunk its earnings per share by 19% per year. Its revenue is down 6.4% over the previous year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Jay Shree Tea & Industries Limited Been A Good Investment?
Since shareholders would have lost about 2.2% over three years, some Jay Shree Tea & Industries Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Jay Shree Tea & Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
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. We identified 4 warning signs for Jay Shree Tea & Industries (1 is concerning!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
About NSEI:JAYSREETEA
Jay Shree Tea & Industries
Engages in the manufacture and sale of tea in India and internationally.
Low and slightly overvalued.
