Does Apcotex Industries' (NSE:APCOTEXIND) CEO Salary Compare Well With Industry Peers?

Abhiraj Choksey has been the CEO of Apcotex Industries Limited (NSE:APCOTEXIND) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Apcotex Industries pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Apcotex Industries

How Does Total Compensation For Abhiraj Choksey Compare With Other Companies In The Industry?

Our data indicates that Apcotex Industries Limited has a market capitalization of ₹7.7b, and total annual CEO compensation was reported as ₹12m for the year to March 2020. Notably, that's an increase of 11% over the year before. Notably, the salary which is ₹11.3m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹7.1m. Hence, we can conclude that Abhiraj Choksey is remunerated higher than the industry median. Moreover, Abhiraj Choksey also holds ₹1.0b worth of Apcotex Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. Apcotex Industries is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

A Look at Apcotex Industries Limited's Growth Numbers

Over the last three years, Apcotex Industries Limited has shrunk its earnings per share by 31% per year. It saw its revenue drop 29% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Apcotex Industries Limited Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Apcotex Industries Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Apcotex Industries Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. What's equally worrying is that the company isn't growing by our analysis. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Apcotex Industries 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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