This article will reflect on the compensation paid to Suresh Agrawal who has served as CEO of Manaksia Limited (NSE:MANAKSIA) since 2014. This analysis will also assess whether Manaksia pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Manaksia
How Does Total Compensation For Suresh Agrawal Compare With Other Companies In The Industry?
According to our data, Manaksia Limited has a market capitalization of ₹3.4b, and paid its CEO total annual compensation worth ₹8.4m over the year to March 2020. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹8.4m.
For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹4.2m. Accordingly, our analysis reveals that Manaksia Limited pays Suresh Agrawal north of the industry median. Moreover, Suresh Agrawal also holds ₹350m worth of Manaksia stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | ₹8.4m | ₹8.4m | 100% |
| Other | - | - | - |
| Total Compensation | ₹8.4m | ₹8.4m | 100% |
On an industry level, roughly 99% of total compensation represents salary and 1.1% is other remuneration. At the company level, Manaksia pays Suresh Agrawal solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Manaksia Limited's Growth Numbers
Over the last three years, Manaksia Limited has shrunk its earnings per share by 12% per year. It saw its revenue drop 12% over the last year.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Manaksia Limited Been A Good Investment?
Manaksia Limited has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
Manaksia rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Manaksia 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. Unfortunately, EPS has not grown in three years, failing to impress us. And shareholder returns are decent but not great. So we think more research is needed, but we don't think the CEO is underpaid.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Manaksia (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
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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About NSEI:MANAKSIA
Manaksia
Engages in the manufacture, sale, and trading of metal products in India and internationally.
Excellent balance sheet with acceptable track record.
