What Can We Make Of Cupid's (NSE:CUPID) CEO Compensation?

Omprakash Garg is the CEO of Cupid Limited (NSE:CUPID), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Cupid pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Cupid

How Does Total Compensation For Omprakash Garg Compare With Other Companies In The Industry?

Our data indicates that Cupid Limited has a market capitalization of ₹3.0b, and total annual CEO compensation was reported as ₹17m for the year to March 2020. We note that's an increase of 57% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹6.4m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹2.3m. Accordingly, our analysis reveals that Cupid Limited pays Omprakash Garg north of the industry median. Furthermore, Omprakash Garg directly owns ₹6.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. In Cupid's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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 Cupid Limited's Growth Numbers

Cupid Limited has seen its earnings per share (EPS) increase by 16% a year over the past three years. Its revenue is up 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cupid Limited Been A Good Investment?

Cupid Limited has generated a total shareholder return of 9.3% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we noted earlier, Cupid pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize CEO compensation, though we'd recommend further research on management.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Cupid that investors should think about before committing capital to this stock.

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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