Most Shareholders Will Probably Agree With Quick Heal Technologies Limited's (NSE:QUICKHEAL) CEO Compensation

CEO Kailash Katkar has done a decent job of delivering relatively good performance at Quick Heal Technologies Limited (NSE:QUICKHEAL) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 06 August 2021. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Quick Heal Technologies

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Comparing Quick Heal Technologies Limited's CEO Compensation With the industry

Our data indicates that Quick Heal Technologies Limited has a market capitalization of ₹19b, and total annual CEO compensation was reported as ₹13m for the year to March 2021. That's mostly flat as compared to the prior year's compensation. In particular, the salary of ₹11.9m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the industry with market capitalizations between ₹7.4b and ₹30b, we discovered that the median CEO total compensation of that group was ₹14m. So it looks like Quick Heal Technologies compensates Kailash Katkar in line with the median for the industry. What's more, Kailash Katkar holds ₹5.1b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20212020Proportion (2021)
Salary₹12m₹12m90%
Other₹1.3m₹1.3m10%
Total Compensation₹13m ₹13m100%

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. Quick Heal Technologies pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
NSEI:QUICKHEAL CEO Compensation July 31st 2021

Quick Heal Technologies Limited's Growth

Quick Heal Technologies Limited's earnings per share (EPS) grew 12% per year over the last three years. In the last year, its revenue is up 16%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Quick Heal Technologies Limited Been A Good Investment?

Quick Heal Technologies Limited has served shareholders reasonably well, with a total return of 17% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Quick Heal Technologies that you should be aware of before investing.

Switching gears from Quick Heal Technologies, 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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Valuation is complex, but we're here to simplify it.

Discover if Quick Heal Technologies might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

About NSEI:QUICKHEAL

Quick Heal Technologies

Engages in the provision of security software products and solutions to consumers, small businesses, government establishments, and corporate houses in India and internationally.

Flawless balance sheet with low risk.

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