How Much Is Manaksia Steels Limited (NSE:MANAKSTEEL) CEO Getting Paid?

Vineet Agrawal became the CEO of Manaksia Steels Limited (NSE:MANAKSTEEL) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Manaksia Steels

Comparing Manaksia Steels Limited's CEO Compensation With the industry

At the time of writing, our data shows that Manaksia Steels Limited has a market capitalization of ₹1.6b, and reported total annual CEO compensation of ₹23m for 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 ₹23m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹4.1m. This suggests that Vineet Agrawal is paid more than the median for the industry.

On an industry level, around 99% of total compensation represents salary and 1.1% is other remuneration. Speaking on a company level, Manaksia Steels 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 Manaksia Steels Limited's Growth Numbers

Manaksia Steels Limited's earnings per share (EPS) grew 17% per year over the last three years. It saw its revenue drop 11% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Steels Limited Been A Good Investment?

Since shareholders would have lost about 41% over three years, some Manaksia Steels Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Manaksia Steels pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Manaksia Steels pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

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. We've identified 2 warning signs for Manaksia Steels that investors should be aware of in a dynamic business environment.

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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