How Does Kellton Tech Solutions' (NSE:KELLTONTEC) CEO Salary Compare to Peers?

This article will reflect on the compensation paid to Karanjit Singh who has served as CEO of Kellton Tech Solutions Limited (NSE:KELLTONTEC) since 2014. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Kellton Tech Solutions.

Check out our latest analysis for Kellton Tech Solutions

Comparing Kellton Tech Solutions Limited's CEO Compensation With the industry

Our data indicates that Kellton Tech Solutions Limited has a market capitalization of ₹7.5b, and total annual CEO compensation was reported as ₹5.5m for the year to March 2020. That is, the compensation was roughly the same as last year. Notably, the salary of ₹5.5m 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 ₹3.0m. Accordingly, our analysis reveals that Kellton Tech Solutions Limited pays Karanjit Singh north of the industry median. Furthermore, Karanjit Singh directly owns ₹29m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. At the company level, Kellton Tech Solutions pays Karanjit Singh solely through a salary, preferring to go down a conventional route. 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.

Kellton Tech Solutions Limited's Growth

Over the past three years, Kellton Tech Solutions Limited has seen its earnings per share (EPS) grow by 1.9% per year. In the last year, its revenue changed by just 0.2%.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Kellton Tech Solutions Limited Been A Good Investment?

Most shareholders would probably be pleased with Kellton Tech Solutions Limited for providing a total return of 34% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Kellton Tech Solutions rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Kellton Tech Solutions 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. Still, shareholder returns for the company are very impressive for the last three years. Albeit, EPS growth has not been as impressive over the same time frame. All things considered, we don't think there's a reason to criticize CEO compensation, though we hope Kellton Tech Solutions will post healthier EPS growth moving forward.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Kellton Tech Solutions that you should be aware of before investing.

Important note: Kellton Tech Solutions 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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