What Does Brigade Enterprises' (NSE:BRIGADE) CEO Pay Reveal?

Mysore Jaishankar has been the CEO of Brigade Enterprises Limited (NSE:BRIGADE) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Brigade Enterprises.

See our latest analysis for Brigade Enterprises

How Does Total Compensation For Mysore Jaishankar Compare With Other Companies In The Industry?

Our data indicates that Brigade Enterprises Limited has a market capitalization of ₹54b, and total annual CEO compensation was reported as ₹69m for the year to March 2020. We note that's a decrease of 39% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹16m.

On comparing similar companies from the same industry with market caps ranging from ₹29b to ₹117b, we found that the median CEO total compensation was ₹44m. This suggests that Mysore Jaishankar is paid more than the median for the industry. What's more, Mysore Jaishankar holds ₹10b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. It's interesting to note that Brigade Enterprises allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Brigade Enterprises Limited's Growth Numbers

Over the last three years, Brigade Enterprises Limited has shrunk its earnings per share by 29% per year. Its revenue is down 41% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Brigade Enterprises Limited Been A Good Investment?

Brigade Enterprises Limited has served shareholders reasonably well, with a total return of 33% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As we touched on above, Brigade Enterprises 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. Unfortunately, EPS has not grown in three years, failing to impress us. And shareholder returns are decent but not great. So you may want to delve deeper, because we don't think the amount Mysore makes is justifiable.

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 3 warning signs for Brigade Enterprises you should be aware of, and 1 of them can't be ignored.

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.

When trading Brigade Enterprises or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on 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 (at) simplywallst.com.