What Did Navneet Education's (NSE:NAVNETEDUL) CEO Take Home Last Year?

This article will reflect on the compensation paid to Sunil Gala who has served as CEO of Navneet Education Limited (NSE:NAVNETEDUL) since 2013. This analysis will also assess whether Navneet Education pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Navneet Education

How Does Total Compensation For Sunil Gala Compare With Other Companies In The Industry?

Our data indicates that Navneet Education Limited has a market capitalization of ₹20b, and total annual CEO compensation was reported as ₹14m for the year to March 2020. That's a slight decrease of 6.3% on the prior year. Notably, the salary which is ₹7.72m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between ₹7.4b and ₹30b had a median total CEO compensation of ₹29m. In other words, Navneet Education pays its CEO lower than the industry median. Furthermore, Sunil Gala directly owns ₹1.3b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2.3% of the pie. In Navneet Education's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Navneet Education Limited's Growth Numbers

Over the last three years, Navneet Education Limited has shrunk its earnings per share by 17% per year. Its revenue is down 44% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Navneet Education Limited Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Navneet Education 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 we touched on above, Navneet Education Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. It's tough to say that Sunil is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

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 Navneet Education 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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