Increases to CEO Compensation Might Be Put On Hold For Now at Country Condo's Limited (NSE:COUNCODOS)

Under the guidance of CEO Datla Krishna Raju, Country Condo's Limited (NSE:COUNCODOS) has performed reasonably well recently. As shareholders go into the upcoming AGM on 27 September 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Country Condo's

How Does Total Compensation For Datla Krishna Raju Compare With Other Companies In The Industry?

Our data indicates that Country Condo's Limited has a market capitalization of ₹221m, and total annual CEO compensation was reported as ₹4.3m for the year to March 2021. That's a notable increase of 19% on last year. Notably, the salary of ₹4.3m is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹1.5m. Accordingly, our analysis reveals that Country Condo's Limited pays Datla Krishna Raju north of the industry median. Moreover, Datla Krishna Raju also holds ₹9.7m worth of Country Condo's stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	₹4.3m	₹3.6m	100%
Other	-	-	-
Total Compensation	₹4.3m	₹3.6m	100%

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, Country Condo's prefers to reward its CEO through a salary, opting not to pay Datla Krishna Raju 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.

Country Condo's Limited's Growth

Country Condo's Limited has seen its earnings per share (EPS) increase by 35% a year over the past three years. Its revenue is up 16% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Country Condo's Limited Been A Good Investment?

Country Condo's Limited has generated a total shareholder return of 5.6% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Country Condo's pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Country Condo's we think you should know about.

Important note: Country Condo's 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. 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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