What We Learned About Kiri Industries' (NSE:KIRIINDUS) CEO Pay

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 assess whether Kiri Industries pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Kiri Industries

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

Our data indicates that Kiri Industries Limited has a market capitalization of ₹17b, and total annual CEO compensation was reported as ₹13m for the year to March 2020. That's a notable increase of 10.0% on last year. Notably, the salary of ₹13m is the entirety of the CEO compensation.

On comparing similar companies from the same industry with market caps ranging from ₹7.4b to ₹30b, we found that the median CEO total compensation was ₹21m. This suggests that Manishbhai Kiri is paid below the industry median. Furthermore, Manishbhai Kiri directly owns ₹939m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Speaking on a company level, Kiri Industries prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Kiri Industries Limited's Growth Numbers

Kiri Industries Limited has reduced its earnings per share by 13% a year over the last three years. It saw its revenue drop 35% 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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Kiri Industries Limited Been A Good Investment?

With a three year total loss of 7.2% for the shareholders, Kiri Industries Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Kiri Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Kiri Industries pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Manishbhai is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

So you may want to check if insiders are buying Kiri Industries shares with their own money (free access).

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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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