What Does Thangamayil Jewellery's (NSE:THANGAMAYL) CEO Pay Reveal?

The CEO of Thangamayil Jewellery Limited (NSE:THANGAMAYL) is Balarama Das, 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 Thangamayil Jewellery

Comparing Thangamayil Jewellery Limited's CEO Compensation With the industry

Our data indicates that Thangamayil Jewellery Limited has a market capitalization of ₹5.4b, and total annual CEO compensation was reported as ₹7.2m for the year to March 2020. That is, the compensation was roughly the same as last year. Notably, the salary of ₹7.2m 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 ₹9.8m. From this we gather that Balarama Das is paid around the median for CEOs in the industry. Moreover, Balarama Das also holds ₹1.1b worth of Thangamayil Jewellery stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 0.7% is other remuneration. Speaking on a company level, Thangamayil Jewellery 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 Thangamayil Jewellery Limited's Growth Numbers

Over the past three years, Thangamayil Jewellery Limited has seen its earnings per share (EPS) grow by 11% per year. In the last year, its revenue is down 14%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Thangamayil Jewellery Limited Been A Good Investment?

Given the total shareholder loss of 4.6% over three years, many shareholders in Thangamayil Jewellery Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Thangamayil Jewellery rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Thangamayil Jewellery Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

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 4 warning signs (and 1 which is a bit concerning) in Thangamayil Jewellery we think you should know about.

Switching gears from Thangamayil Jewellery, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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