Here's What We Think About Nath Bio-Genes (India)'s (NSE:NATHBIOGEN) CEO Pay

The CEO of Nath Bio-Genes (India) Limited (NSE:NATHBIOGEN) is Satish Kagliwal, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Nath Bio-Genes (India) pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Nath Bio-Genes (India)

Comparing Nath Bio-Genes (India) Limited's CEO Compensation With the industry

Our data indicates that Nath Bio-Genes (India) Limited has a market capitalization of ₹6.6b, and total annual CEO compensation was reported as ₹4.8m for the year to March 2020. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.8m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹3.5m. Hence, we can conclude that Satish Kagliwal is remunerated higher than 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. Speaking on a company level, Nath Bio-Genes (India) prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

Nath Bio-Genes (India) Limited's Growth

Nath Bio-Genes (India) Limited has seen its earnings per share (EPS) increase by 38% a year over the past three years. It achieved revenue growth of 21% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Nath Bio-Genes (India) Limited Been A Good Investment?

Since shareholders would have lost about 13% over three years, some Nath Bio-Genes (India) Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Nath Bio-Genes (India) pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Nath Bio-Genes (India) pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the earnings per share growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Considering overall performance, we can't say Satish is underpaid, in fact compensation is definitely on the higher side.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Nath Bio-Genes (India) that investors should look into moving forward.

Important note: Nath Bio-Genes (India) 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.

If you’re looking to trade Nath Bio-Genes (India), open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.