How Much Did Sequent Scientific's (NSE:SEQUENT) CEO Pocket Last Year?

Manish Gupta has been the CEO of Sequent Scientific Limited (NSE:SEQUENT) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. 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

According to our data, Sequent Scientific Limited has a market capitalization of ₹52b, and paid its CEO total annual compensation worth ₹12m over the year to March 2020. That's a modest increase of 6.0% on the prior year. In particular, the salary of ₹10.1m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between ₹29b and ₹117b had a median total CEO compensation of ₹38m. That is to say, Manish Gupta is paid under the industry median. Moreover, Manish Gupta also holds ₹426m 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 99% of total compensation out of all the companies we analyzed, while other remuneration made up 1.2% of the pie. Sequent Scientific sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Sequent Scientific Limited's Growth Numbers

Sequent Scientific Limited has seen its earnings per share (EPS) increase by 30% a year over the past three years. In the last year, its revenue is up 14%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Sequent Scientific Limited Been A Good Investment?

We think that the total shareholder return of 125%, over three years, would leave most Sequent Scientific Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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. And given most shareholders are probably very happy with recent shareholder returns, they might even think Manish deserves a raise!

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Sequent Scientific that investors should look into moving forward.

Important note: Sequent Scientific is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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