Performance at Arihant Superstructures Limited (NSE:ARIHANTSUP) has been reasonably good and CEO Ashokkumar Chhajer has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 28 August 2021. However, some shareholders will still be cautious of paying the CEO excessively.
Comparing Arihant Superstructures Limited's CEO Compensation With the industry
Our data indicates that Arihant Superstructures Limited has a market capitalization of ₹4.5b, and total annual CEO compensation was reported as ₹4.5m for the year to March 2021. We note that's an increase of 38% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.5m.
In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹1.9m. Hence, we can conclude that Ashokkumar Chhajer is remunerated higher than the industry median. Moreover, Ashokkumar Chhajer also holds ₹2.0b worth of Arihant Superstructures 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 represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. On a company level, Arihant Superstructures prefers to reward its CEO through a salary, opting not to pay Ashokkumar Chhajer through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Arihant Superstructures Limited's Growth Numbers
Over the past three years, Arihant Superstructures Limited has seen its earnings per share (EPS) grow by 25% per year. In the last year, its revenue is up 87%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Arihant Superstructures Limited Been A Good Investment?
Boasting a total shareholder return of 61% over three years, Arihant Superstructures Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Arihant Superstructures rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Arihant Superstructures you should be aware of, and 2 of them shouldn't be ignored.
Switching gears from Arihant Superstructures, 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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