How Much Is TCI Developers' (NSE:TCIDEVELOP) CEO Getting Paid?

The CEO of TCI Developers Limited (NSE:TCIDEVELOP) is Naresh Baranwal, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for TCI Developers.

View our latest analysis for TCI Developers

How Does Total Compensation For Naresh Baranwal Compare With Other Companies In The Industry?

Our data indicates that TCI Developers Limited has a market capitalization of ₹1.1b, and total annual CEO compensation was reported as ₹3.8m for the year to March 2020. That's just a smallish increase of 6.1% on last year. Notably, the salary of ₹3.8m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹2.8m. Hence, we can conclude that Naresh Baranwal 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. Speaking on a company level, TCI Developers prefers to tread along a traditional path, disbursing all compensation through a salary. 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 TCI Developers Limited's Growth Numbers

TCI Developers Limited has reduced its earnings per share by 21% a year over the last three years. Its revenue is up 3.2% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 TCI Developers Limited Been A Good Investment?

With a three year total loss of 46% for the shareholders, TCI Developers Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

TCI Developers pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, TCI Developers 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. This doesn't look good against shareholder returns, which have been negative for the past three years. Arguably worse, we've been waiting for positive EPS growth for the last three years. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for TCI Developers 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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