How Much Is Uflex Limited (NSE:UFLEX) Paying Its CEO?

Ashok Chaturvedi is the CEO of Uflex Limited (NSE:UFLEX), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Uflex

Comparing Uflex Limited's CEO Compensation With the industry

Our data indicates that Uflex Limited has a market capitalization of ₹25b, and total annual CEO compensation was reported as ₹67m for the year to March 2020. That's a notable increase of 55% on last year. In particular, the salary of ₹65.3m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₹15b to ₹58b, the reported median CEO total compensation was ₹18m. Hence, we can conclude that Ashok Chaturvedi is remunerated higher than the industry median. What's more, Ashok Chaturvedi holds ₹744m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Uflex has gone down a largely traditional route, paying Ashok Chaturvedi a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Uflex Limited's Growth

Over the past three years, Uflex Limited has seen its earnings per share (EPS) grow by 19% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Uflex Limited Been A Good Investment?

With a three year total loss of 9.8% for the shareholders, Uflex Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Ashok receives almost all of their compensation through a salary. As we touched on above, Uflex Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Ashok is underpaid, in fact compensation is definitely on the higher side.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for Uflex (2 make us uncomfortable!) that you should be aware of before investing here.

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.

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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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