Our Take On TTK Healthcare's (NSE:TTKHLTCARE) CEO Salary

This article will reflect on the compensation paid to T. Raghunathan who has served as CEO of TTK Healthcare Limited (NSE:TTKHLTCARE) since 2014. This analysis will also assess whether TTK Healthcare pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for TTK Healthcare

How Does Total Compensation For T. Raghunathan Compare With Other Companies In The Industry?

At the time of writing, our data shows that TTK Healthcare Limited has a market capitalization of ₹8.4b, and reported total annual CEO compensation of ₹11m for the year to March 2020. Notably, that's a decrease of 48% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹3.6m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹3.3m. This suggests that T. Raghunathan is paid more than the median for the industry. What's more, T. Raghunathan holds ₹23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 1.2% is other remuneration. It's interesting to note that TTK Healthcare allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at TTK Healthcare Limited's Growth Numbers

TTK Healthcare Limited's earnings per share (EPS) grew 13% per year over the last three years. Its revenue is down 8.5% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has TTK Healthcare Limited Been A Good Investment?

Given the total shareholder loss of 26% over three years, many shareholders in TTK Healthcare Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, TTK Healthcare Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong, but it's disappointing to see negative shareholder returns over the same period. Considering overall performance, we can't say T. is underpaid, in fact compensation is definitely on the higher side.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for TTK Healthcare you should be aware of, and 1 of them doesn't sit too well with us.

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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