A Look At Max Ventures and Industries' (NSE:MAXVIL) CEO Remuneration

Sahil Vachani became the CEO of Max Ventures and Industries Limited (NSE:MAXVIL) 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.

View our latest analysis for Max Ventures and Industries

Comparing Max Ventures and Industries Limited's CEO Compensation With the industry

According to our data, Max Ventures and Industries Limited has a market capitalization of ₹6.4b, and paid its CEO total annual compensation worth ₹29m over the year to March 2020. That's a notable increase of 14% on last year. We note that the salary portion, which stands at ₹14.4m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹6.6m. This suggests that Sahil Vachani is paid more than the median for the industry. Moreover, Sahil Vachani also holds ₹2.7m worth of Max Ventures and Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 90% of total compensation represents salary, while the remainder of 10% is other remuneration. Max Ventures and Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Max Ventures and Industries Limited's Growth

Over the past three years, Max Ventures and Industries Limited has seen its earnings per share (EPS) grow by 55% per year. Its revenue is up 64% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Max Ventures and Industries Limited Been A Good Investment?

Since shareholders would have lost about 56% over three years, some Max Ventures and Industries Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Sahil is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Sahil is underpaid, in fact compensation is definitely on the higher side.

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 3 warning signs for Max Ventures and Industries (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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