A Quick Analysis On Tribhovandas Bhimji Zaveri's (NSE:TBZ) CEO Salary

Shrikant Zaveri has been the CEO of Tribhovandas Bhimji Zaveri Limited (NSE:TBZ) since 2015, 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 Tribhovandas Bhimji Zaveri.

See our latest analysis for Tribhovandas Bhimji Zaveri

How Does Total Compensation For Shrikant Zaveri Compare With Other Companies In The Industry?

Our data indicates that Tribhovandas Bhimji Zaveri Limited has a market capitalization of ₹5.0b, and total annual CEO compensation was reported as ₹24m for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary of ₹24m is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹7.8m. Accordingly, our analysis reveals that Tribhovandas Bhimji Zaveri Limited pays Shrikant Zaveri north of the industry median. What's more, Shrikant Zaveri holds ₹2.7b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, Tribhovandas Bhimji Zaveri pays Shrikant Zaveri solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Tribhovandas Bhimji Zaveri Limited's Growth

Tribhovandas Bhimji Zaveri Limited's earnings per share (EPS) grew 20% per year over the last three years. It saw its revenue drop 30% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Tribhovandas Bhimji Zaveri Limited Been A Good Investment?

With a three year total loss of 23% for the shareholders, Tribhovandas Bhimji Zaveri Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Tribhovandas Bhimji Zaveri rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Shrikant is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Shrikant is underpaid, in fact compensation is definitely on the higher side.

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. That's why we did our research, and identified 4 warning signs for Tribhovandas Bhimji Zaveri (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: Tribhovandas Bhimji Zaveri 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. 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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