Our Take On Mandhana Retail Ventures' (NSE:TMRVL) CEO Salary

Manish S. Mandhana became the CEO of The Mandhana Retail Ventures Limited (NSE:TMRVL) in 2017, and we think it's a good time to look at 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 Mandhana Retail Ventures.

Check out our latest analysis for Mandhana Retail Ventures

Comparing The Mandhana Retail Ventures Limited's CEO Compensation With the industry

According to our data, The Mandhana Retail Ventures Limited has a market capitalization of ₹268m, and paid its CEO total annual compensation worth ₹9.6m over the year to March 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary of ₹9.6m 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 ₹8.3m. So it looks like Mandhana Retail Ventures compensates Manish S. Mandhana in line with the median for the industry. What's more, Manish S. Mandhana holds ₹23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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, Mandhana Retail Ventures prefers to reward its CEO through a salary, opting not to pay Manish S. Mandhana 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.

The Mandhana Retail Ventures Limited's Growth

The Mandhana Retail Ventures Limited has reduced its earnings per share by 131% a year over the last three years. It saw its revenue drop 65% over the last year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 The Mandhana Retail Ventures Limited Been A Good Investment?

Since shareholders would have lost about 91% over three years, some The Mandhana Retail Ventures Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Mandhana Retail Ventures rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Manish S. is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which are a bit concerning) in Mandhana Retail Ventures we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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