Our Take On Oswal Greentech's (NSE:BINDALAGRO) CEO Salary

The CEO of Oswal Greentech Limited (NSE:BINDALAGRO) is Anil Bhalla, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Oswal Greentech

Comparing Oswal Greentech Limited's CEO Compensation With the industry

At the time of writing, our data shows that Oswal Greentech Limited has a market capitalization of ₹4.4b, and reported total annual CEO compensation of ₹21m for the year to March 2020. We note that's a decrease of 8.5% compared to last year. In particular, the salary of ₹20.0m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹2.3m. Hence, we can conclude that Anil Bhalla is remunerated higher than the industry median.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Oswal Greentech is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Oswal Greentech Limited's Growth

Oswal Greentech Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Oswal Greentech Limited Been A Good Investment?

Since shareholders would have lost about 41% over three years, some Oswal Greentech Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Oswal Greentech pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Anil is underpaid, in fact compensation is definitely on the higher side.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Oswal Greentech that you should be aware of before investing.

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.

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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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