How Much Is Ind-Swift Limited (NSE:INDSWFTLTD) Paying Its CEO?

Gopal Munjal became the CEO of Ind-Swift Limited (NSE:INDSWFTLTD) in 2008, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Ind-Swift pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Ind-Swift

Comparing Ind-Swift Limited's CEO Compensation With the industry

At the time of writing, our data shows that Ind-Swift Limited has a market capitalization of ₹218m, 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. Notably, the salary of ₹12m is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹3.3m. Hence, we can conclude that Gopal Munjal is remunerated higher than the industry median. Furthermore, Gopal Munjal directly owns ₹8.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 1.2% is other remuneration. On a company level, Ind-Swift prefers to reward its CEO through a salary, opting not to pay Gopal Munjal through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Ind-Swift Limited's Growth Numbers

Over the past three years, Ind-Swift Limited has seen its earnings per share (EPS) grow by 15% per year. It achieved revenue growth of 7.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Ind-Swift Limited Been A Good Investment?

Since shareholders would have lost about 55% over three years, some Ind-Swift Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Ind-Swift pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Gopal is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think Gopal is earning a very handsome sum.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Ind-Swift (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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. 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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