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We Take A Look At Why E2E Networks Limited's (NSE:E2E) CEO Has Earned Their Pay Packet
Key Insights
- E2E Networks to hold its Annual General Meeting on 11th of September
- Salary of ₹11.0m is part of CEO Tarun Dua's total remuneration
- Total compensation is similar to the industry average
- Over the past three years, E2E Networks' EPS grew by 288% and over the past three years, the total shareholder return was 5,202%
We have been pretty impressed with the performance at E2E Networks Limited (NSE:E2E) recently and CEO Tarun Dua deserves a mention for their role in it. Coming up to the next AGM on 11th of September, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for E2E Networks
Comparing E2E Networks Limited's CEO Compensation With The Industry
At the time of writing, our data shows that E2E Networks Limited has a market capitalization of ₹36b, and reported total annual CEO compensation of ₹11m for the year to March 2024. We note that's an increase of 16% above last year. Notably, the salary of ₹11m is the entirety of the CEO compensation.
In comparison with other companies in the Indian IT industry with market capitalizations ranging from ₹17b to ₹67b, the reported median CEO total compensation was ₹12m. This suggests that E2E Networks remunerates its CEO largely in line with the industry average. Furthermore, Tarun Dua directly owns ₹21b worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | ₹11m | ₹9.5m | 100% |
| Other | - | - | - |
| Total Compensation | ₹11m | ₹9.5m | 100% |
Speaking on an industry level, nearly 95% of total compensation represents salary, while the remainder of 5% is other remuneration. Speaking on a company level, E2E Networks prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
E2E Networks Limited's Growth
E2E Networks Limited has seen its earnings per share (EPS) increase by 288% a year over the past three years. It achieved revenue growth of 65% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has E2E Networks Limited Been A Good Investment?
Most shareholders would probably be pleased with E2E Networks Limited for providing a total return of 5,202% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
E2E Networks rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for E2E Networks that you should be aware of before investing.
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.
Valuation is complex, but we're here to simplify it.
Discover if E2E Networks might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About NSEI:E2E
E2E Networks
Provides cloud computing services in India.
Adequate balance sheet with low risk.
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