How Much Did Jindal Stainless (Hisar)'s (NSE:JSLHISAR) CEO Pocket Last Year?

This article will reflect on the compensation paid to Abhyuday Jindal who has served as CEO of Jindal Stainless (Hisar) Limited (NSE:JSLHISAR) since 2018. This analysis will also assess whether Jindal Stainless (Hisar) pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Jindal Stainless (Hisar)

Comparing Jindal Stainless (Hisar) Limited's CEO Compensation With the industry

According to our data, Jindal Stainless (Hisar) Limited has a market capitalization of ₹29b, and paid its CEO total annual compensation worth ₹65m over the year to March 2020. That's a slight decrease of 4.7% on the prior year. Notably, the salary which is ₹60.0m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between ₹14b and ₹58b had a median total CEO compensation of ₹30m. Accordingly, our analysis reveals that Jindal Stainless (Hisar) Limited pays Abhyuday Jindal north of the industry median. What's more, Abhyuday Jindal holds ₹2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 99% of total compensation represents salary and 1.1% is other remuneration. Jindal Stainless (Hisar) is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 Jindal Stainless (Hisar) Limited's Growth Numbers

Over the last three years, Jindal Stainless (Hisar) Limited has shrunk its earnings per share by 8.1% per year. It saw its revenue drop 13% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Jindal Stainless (Hisar) Limited Been A Good Investment?

Given the total shareholder loss of 35% over three years, many shareholders in Jindal Stainless (Hisar) Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, Jindal Stainless (Hisar) 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. This doesn't look good against shareholder returns, which have been negative for the past three years. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Jindal Stainless (Hisar) that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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