What Did Creative Eye's (NSE:CREATIVEYE) CEO Take Home Last Year?

Dheeraj Kochhar is the CEO of Creative Eye Limited (NSE:CREATIVEYE), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Creative Eye.

Check out our latest analysis for Creative Eye

How Does Total Compensation For Dheeraj Kochhar Compare With Other Companies In The Industry?

According to our data, Creative Eye Limited has a market capitalization of ₹61m, and paid its CEO total annual compensation worth ₹4.5m over the year to March 2020. That is, the compensation was roughly the same as last year. In particular, the salary of ₹4.23m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹1.6m. This suggests that Dheeraj Kochhar is paid more than the median for the industry. Furthermore, Dheeraj Kochhar directly owns ₹13m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Our data reveals that Creative Eye allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Creative Eye Limited's Growth

Creative Eye Limited's earnings per share (EPS) grew 45% per year over the last three years. Its revenue is down 74% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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?

Since shareholders would have lost about 34% over three years, some Creative Eye Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Dheeraj is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we'd stop short of calling it inappropriate, we think Dheeraj is earning a very handsome sum.

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 did our research and identified 4 warning signs (and 3 which are a bit concerning) in Creative Eye we think you should know about.

Switching gears from Creative Eye, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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