What Can We Conclude About Shreyans Industries' (NSE:SHREYANIND) CEO Pay?

Anil Kumar has been the CEO of Shreyans Industries Limited (NSE:SHREYANIND) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Shreyans Industries.

View our latest analysis for Shreyans Industries

Comparing Shreyans Industries Limited's CEO Compensation With the industry

According to our data, Shreyans Industries Limited has a market capitalization of ₹1.2b, and paid its CEO total annual compensation worth ₹15m over the year to March 2020. 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 ₹5.4m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹7.3m. This suggests that Anil Kumar is paid more than the median for the industry.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. Shreyans Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked 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 12% per year. Its revenue is down 30% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last 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?

With a three year total loss of 54% for the shareholders, Shreyans Industries Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Shreyans Industries pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. Arguably worse, we've been waiting for positive EPS growth for the last three years. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 4 warning signs for Shreyans Industries that investors should be aware of in a dynamic business environment.

Important note: Shreyans Industries is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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