How Much Is Star Cement Limited (NSE:STARCEMENT) CEO Getting Paid?

Sanjay Gupta has been the CEO of Star Cement Limited (NSE:STARCEMENT) since 2003, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Star Cement pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Star Cement

How Does Total Compensation For Sanjay Gupta Compare With Other Companies In The Industry?

Our data indicates that Star Cement Limited has a market capitalization of ₹39b, and total annual CEO compensation was reported as ₹19m for the year to March 2020. Notably, that's an increase of 38% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹19m.

On examining similar-sized companies in the industry with market capitalizations between ₹15b and ₹59b, we discovered that the median CEO total compensation of that group was ₹32m. That is to say, Sanjay Gupta is paid under the industry median.

On an industry level, roughly 97% of total compensation represents salary and 2.7% is other remuneration. At the company level, Star Cement pays Sanjay Gupta solely through a salary, preferring to go down a conventional route. 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 Star Cement Limited's Growth Numbers

Over the last three years, Star Cement Limited has not seen its earnings per share change much, though they have deteriorated slightly. Its revenue is down 5.6% over the previous year.

A lack of EPS improvement is not good to see. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Star Cement Limited Been A Good Investment?

Given the total shareholder loss of 23% over three years, many shareholders in Star Cement Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Star Cement rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Star Cement Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. EPS growth has failed to impress us, and the same can be said about shareholder returns. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

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. That's why we did some digging and identified 1 warning sign for Star Cement that you should be aware of before investing.

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.

If you’re looking to trade Star Cement, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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@simplywallst.com.