Increases to CEO Compensation Might Be Put On Hold For Now at Sharda Cropchem Limited (NSE:SHARDACROP)
Performance at Sharda Cropchem Limited (NSE:SHARDACROP) has been reasonably good and CEO Ramprakash Bubna has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29 July 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for Sharda Cropchem
Comparing Sharda Cropchem Limited's CEO Compensation With the industry
Our data indicates that Sharda Cropchem Limited has a market capitalization of ₹31b, and total annual CEO compensation was reported as ₹45m for the year to March 2021. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹18m.
On comparing similar companies from the same industry with market caps ranging from ₹15b to ₹60b, we found that the median CEO total compensation was ₹25m. Hence, we can conclude that Ramprakash Bubna is remunerated higher than the industry median. What's more, Ramprakash Bubna holds ₹4.8b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2021 | 2020 | Proportion (2021) |
| Salary | ₹18m | ₹18m | 40% |
| Other | ₹27m | ₹26m | 60% |
| Total Compensation | ₹45m | ₹44m | 100% |
On an industry level, roughly 88% of total compensation represents salary and 12% is other remuneration. In Sharda Cropchem's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Sharda Cropchem Limited's Growth
Sharda Cropchem Limited has seen its earnings per share (EPS) increase by 6.3% a year over the past three years. In the last year, its revenue is up 20%.
This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sharda Cropchem Limited Been A Good Investment?
Sharda Cropchem Limited has generated a total shareholder return of 1.2% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Sharda Cropchem that investors should look into moving forward.
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.
When trading Sharda Cropchem or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
If you're looking to trade Sharda Cropchem, open an account with the lowest-cost platform trusted by professionals, Interactive Brokers.
With clients in over 200 countries and territories, and access to 160 markets, IBKR lets you trade stocks, options, futures, forex, bonds and funds from a single integrated account.
Enjoy no hidden fees, no account minimums, and FX conversion rates as low as 0.03%, far better than what most brokers offer.
Sponsored ContentNew: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
About NSEI:SHARDACROP
Sharda Cropchem
A crop protection chemical company, provides various formulations and generic active ingredients worldwide.
Excellent balance sheet, good value and pays a dividend.
