A Look At IFGL Refractories' (NSE:IFGLEXPOR) CEO Remuneration

The CEO of IFGL Refractories Limited (NSE:IFGLEXPOR) is Kamal Sarda, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for IFGL Refractories.

View our latest analysis for IFGL Refractories

How Does Total Compensation For Kamal Sarda Compare With Other Companies In The Industry?

Our data indicates that IFGL Refractories Limited has a market capitalization of ₹9.8b, and total annual CEO compensation was reported as ₹10m for the year to March 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of ₹9.04m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹2.6m. Accordingly, our analysis reveals that IFGL Refractories Limited pays Kamal Sarda north of the industry median. What's more, Kamal Sarda holds ₹546k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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. Our data reveals that IFGL Refractories allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at IFGL Refractories Limited's Growth Numbers

Over the past three years, IFGL Refractories Limited has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 2.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 IFGL Refractories Limited Been A Good Investment?

IFGL Refractories Limited has not done too badly by shareholders, with a total return of 1.1%, over three years. 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.

In Summary...

As previously discussed, Kamal is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed us with its EPS growth, over three years. We also think investor returns are steady over the same time period. While it may be worth researching further, we don't see a problem with the high CEO pay, given the good EPS growth.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for IFGL Refractories that investors should be aware of in a dynamic business environment.

Switching gears from IFGL Refractories, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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