It's Unlikely That Creative Eye Limited's (NSE:CREATIVEYE) CEO Will See A Huge Pay Rise This Year

Under the guidance of CEO Dheeraj Kochhar, Creative Eye Limited (NSE:CREATIVEYE) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30 September 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Creative Eye

Comparing Creative Eye Limited's CEO Compensation With the industry

Our data indicates that Creative Eye Limited has a market capitalization of ₹63m, and total annual CEO compensation was reported as ₹4.5m for the year to March 2021. There was no change in the compensation compared to last year. In particular, the salary of ₹4.23m, 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 under ₹15b, the reported median total CEO compensation was ₹1.4m. This suggests that Dheeraj Kochhar is paid more than the median for the industry. Moreover, Dheeraj Kochhar also holds ₹13m worth of Creative Eye stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	₹4.2m	₹4.2m	95%
Other	₹234k	₹234k	5%
Total Compensation	₹4.5m	₹4.5m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Although there is a difference in how total compensation is set, Creative Eye more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Creative Eye Limited's Growth

Creative Eye Limited's earnings per share (EPS) grew 51% per year over the last three years. Its revenue is down 77% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Creative Eye Limited Been A Good Investment?

Creative Eye Limited has served shareholders reasonably well, with a total return of 11% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Creative Eye that investors should look into moving forward.

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. 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.
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