How Does Sequent Scientific's (NSE:SEQUENT) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Manish Gupta who has served as CEO of Sequent Scientific Limited (NSE:SEQUENT) since 2014. This analysis will also assess whether Sequent Scientific pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Sequent Scientific

Comparing Sequent Scientific Limited's CEO Compensation With the industry

At the time of writing, our data shows that Sequent Scientific Limited has a market capitalization of ₹38b, and reported total annual CEO compensation of ₹12m for the year to March 2020. That's just a smallish increase of 6.0% on last year. Notably, the salary which is ₹10.1m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from ₹15b to ₹59b, the reported median CEO total compensation was ₹23m. This suggests that Manish Gupta is paid below the industry median. Moreover, Manish Gupta also holds ₹315m worth of Sequent Scientific stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 96% of total compensation out of all the companies we analyzed, while other remuneration made up 4.1% of the pie. Sequent Scientific sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Sequent Scientific Limited's Growth Numbers

Sequent Scientific Limited's earnings per share (EPS) grew 62% per year over the last three years. In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sequent Scientific Limited Been A Good Investment?

Boasting a total shareholder return of 34% over three years, Sequent Scientific Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As previously discussed, Manish is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Considering robust EPS growth, we believe Manish to be modestly paid. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Sequent Scientific that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

If you’re looking to trade Sequent Scientific, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.