What We Learned About Dishman Carbogen Amcis' (NSE:DCAL) CEO Compensation

Arpit Vyas is the CEO of Dishman Carbogen Amcis Limited (NSE:DCAL), 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 Dishman Carbogen Amcis

How Does Total Compensation For Arpit Vyas Compare With Other Companies In The Industry?

At the time of writing, our data shows that Dishman Carbogen Amcis Limited has a market capitalization of ₹22b, and reported total annual CEO compensation of ₹12m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹12m.

On comparing similar companies from the same industry with market caps ranging from ₹15b to ₹59b, we found that the median CEO total compensation was ₹37m. That is to say, Arpit Vyas is paid under the industry median.

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. Speaking on a company level, Dishman Carbogen Amcis prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Dishman Carbogen Amcis Limited's Growth

Over the last three years, Dishman Carbogen Amcis Limited has shrunk its earnings per share by 13% per year. In the last year, its revenue is down 7.1%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dishman Carbogen Amcis Limited Been A Good Investment?

Since shareholders would have lost about 58% over three years, some Dishman Carbogen Amcis Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Dishman Carbogen Amcis rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Dishman Carbogen Amcis Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. EPS growth has failed to impress us, and the same can be said about shareholder returns. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Dishman Carbogen Amcis that investors should look into moving forward.

Switching gears from Dishman Carbogen Amcis, 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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