Increases to CEO Compensation Might Be Put On Hold For Now at Arrow Greentech Limited (NSE:ARROWGREEN)

Under the guidance of CEO Shilpan Patel, Arrow Greentech Limited (NSE:ARROWGREEN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29 September 2021. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Arrow Greentech

How Does Total Compensation For Shilpan Patel Compare With Other Companies In The Industry?

At the time of writing, our data shows that Arrow Greentech Limited has a market capitalization of ₹1.8b, and reported total annual CEO compensation of ₹5.7m for the year to March 2021. That's a notable decrease of 16% on last year. Notably, the salary of ₹5.7m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹2.6m. This suggests that Shilpan Patel is paid more than the median for the industry. Furthermore, Shilpan Patel directly owns ₹971m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	₹5.7m	₹6.9m	100%
Other	-	-	-
Total Compensation	₹5.7m	₹6.9m	100%

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. At the company level, Arrow Greentech pays Shilpan Patel solely through a salary, preferring to go down a conventional route. 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 Arrow Greentech Limited's Growth Numbers

Arrow Greentech Limited has seen its earnings per share (EPS) increase by 68% a year over the past three years. Its revenue is up 153% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Arrow Greentech Limited Been A Good Investment?

With a total shareholder return of 13% over three years, Arrow Greentech Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Arrow Greentech rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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. In our study, we found 3 warning signs for Arrow Greentech you should be aware of, and 1 of them can't be ignored.

Important note: Arrow Greentech 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.

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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.
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