How Does Visaka Industries' (NSE:VISAKAIND) CEO Salary Compare to Peers?

G. Vivekanand has been the CEO of Visaka Industries Limited (NSE:VISAKAIND) since 2009, and this article will examine the executive's compensation 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.

See our latest analysis for Visaka Industries

How Does Total Compensation For G. Vivekanand Compare With Other Companies In The Industry?

Our data indicates that Visaka Industries Limited has a market capitalization of ₹6.5b, and total annual CEO compensation was reported as ₹27m for the year to March 2020. We note that's a decrease of 51% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹12m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹2.6m. Hence, we can conclude that G. Vivekanand is remunerated higher than the industry median. Furthermore, G. Vivekanand directly owns ₹120m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 94% of total compensation represents salary and 6.4% is other remuneration. In Visaka Industries' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Visaka Industries Limited's Growth

Visaka Industries Limited's earnings per share (EPS) grew 11% per year over the last three years. Its revenue is down 13% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Visaka Industries Limited Been A Good Investment?

Since shareholders would have lost about 45% over three years, some Visaka Industries Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Visaka Industries pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say G. is underpaid, in fact compensation is definitely on the higher side.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Visaka Industries that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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