CEO Raju Bista has done a decent job of delivering relatively good performance at Surya Roshni Limited (NSE:SURYAROSNI) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16 September 2021. However, some shareholders may still want to keep CEO compensation within reason.
Comparing Surya Roshni Limited's CEO Compensation With the industry
Our data indicates that Surya Roshni Limited has a market capitalization of ₹30b, and total annual CEO compensation was reported as ₹49m for the year to March 2021. We note that's an increase of 17% above last year. We note that the salary of ₹28.2m makes up a sizeable portion of the total compensation received by the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between ₹15b and ₹59b had a median total CEO compensation of ₹27m. Hence, we can conclude that Raju Bista is remunerated higher than the industry median.
Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.141% is other remuneration. Surya Roshni pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Surya Roshni Limited's Growth
Surya Roshni Limited's earnings per share (EPS) grew 22% per year over the last three years. In the last year, its revenue is up 24%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Surya Roshni Limited Been A Good Investment?
We think that the total shareholder return of 101%, over three years, would leave most Surya Roshni Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
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 2 warning signs for Surya Roshni that investors should think about before committing capital to this stock.
Important note: Surya Roshni 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.
If you decide to trade Surya Roshni, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted
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.
*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.