It Looks Like Shreyans Industries Limited's (NSE:SHREYANIND) CEO May Expect Their Salary To Be Put Under The Microscope

Shreyans Industries Limited (NSE:SHREYANIND) has not performed well recently and CEO Anil Kumar will probably need to up their game. At the upcoming AGM on 31 August 2021, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Shreyans Industries

Comparing Shreyans Industries Limited's CEO Compensation With the industry

Our data indicates that Shreyans Industries Limited has a market capitalization of ₹1.7b, and total annual CEO compensation was reported as ₹11m for the year to March 2021. That's a notable decrease of 27% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹3.7m.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹8.0m. This suggests that Anil Kumar is paid more than the median for the industry. What's more, Anil Kumar holds ₹161k 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	₹3.7m	₹5.4m	34%
Other	₹7.3m	₹9.6m	66%
Total Compensation	₹11m	₹15m	100%

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. In Shreyans Industries' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Shreyans Industries Limited's Growth Numbers

Over the last three years, Shreyans Industries Limited has shrunk its earnings per share by 31% per year. In the last year, its revenue is down 7.9%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Shreyans Industries Limited Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Shreyans Industries Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 6 warning signs for Shreyans Industries (1 can't be ignored!) that you should be aware of before investing here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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