How Much Is Kiri Industries' (NSE:KIRIINDUS) CEO Getting Paid?

The CEO of Kiri Industries Limited (NSE:KIRIINDUS) is Manishbhai Kiri, 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 Kiri Industries.

View our latest analysis for Kiri Industries

How Does Total Compensation For Manishbhai Kiri Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kiri Industries Limited has a market capitalization of ₹16b, and reported total annual CEO compensation of ₹13m for the year to March 2020. Notably, that's an increase of 10.0% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹13m.

For comparison, other companies in the same industry with market capitalizations ranging between ₹7.3b and ₹29b had a median total CEO compensation of ₹18m. This suggests that Kiri Industries remunerates its CEO largely in line with the industry average. What's more, Manishbhai Kiri holds ₹825m 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, roughly 89% of total compensation represents salary and 11% is other remuneration. At the company level, Kiri Industries pays Manishbhai Kiri 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 Kiri Industries Limited's Growth Numbers

Over the last three years, Kiri Industries Limited has shrunk its earnings per share by 11% per year. It saw its revenue drop 36% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Kiri Industries Limited Been A Good Investment?

With a three year total loss of 11% for the shareholders, Kiri Industries Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Kiri Industries rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Kiri Industries pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

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 1 warning sign for Kiri Industries that you should be aware of before investing.

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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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