Stock Analysis

Here's What We Think About Eveready Industries India's (NSE:EVEREADY) CEO Pay

NSEI:EVEREADY
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Amritanshu Khaitan has been the CEO of Eveready Industries India Limited (NSE:EVEREADY) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Eveready Industries India

How Does Total Compensation For Amritanshu Khaitan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Eveready Industries India Limited has a market capitalization of ₹17b, and reported total annual CEO compensation of ₹41m for the year to March 2020. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹17m.

In comparison with other companies in the industry with market capitalizations ranging from ₹7.3b to ₹29b, the reported median CEO total compensation was ₹27m. Accordingly, our analysis reveals that Eveready Industries India Limited pays Amritanshu Khaitan north of the industry median. What's more, Amritanshu Khaitan holds ₹38m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary ₹17m ₹17m 41%
Other ₹24m ₹24m 59%
Total Compensation₹41m ₹41m100%

On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. It's interesting to note that Eveready Industries India allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
NSEI:EVEREADY CEO Compensation February 18th 2021

Eveready Industries India Limited's Growth

Eveready Industries India Limited's earnings per share (EPS) grew 54% per year over the last three years. Its revenue is down 9.6% 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 Eveready Industries India Limited Been A Good Investment?

Given the total shareholder loss of 40% over three years, many shareholders in Eveready Industries India Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Amritanshu is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Amritanshu is earning a very handsome sum.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Eveready Industries India that you should be aware of before investing.

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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