Trejhara Solutions Limited's (NSE:TREJHARA) CEO Compensation Is Looking A Bit Stretched At The Moment

Under the guidance of CEO Amit Sheth, Trejhara Solutions Limited (NSE:TREJHARA) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26 September 2022. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Trejhara Solutions

How Does Total Compensation For Amit Sheth Compare With Other Companies In The Industry?

Our data indicates that Trejhara Solutions Limited has a market capitalization of ₹907m, and total annual CEO compensation was reported as ₹7.4m for the year to March 2022. This was the same amount the CEO received in the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹2.6m.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹2.2m. This suggests that Amit Sheth is paid more than the median for the industry. Moreover, Amit Sheth also holds ₹64m worth of Trejhara Solutions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	₹2.6m	₹2.6m	35%
Other	₹4.8m	₹4.8m	65%
Total Compensation	₹7.4m	₹7.4m	100%

Speaking on an industry level, nearly 97% of total compensation represents salary, while the remainder of 3% is other remuneration. Trejhara Solutions pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Trejhara Solutions Limited's Growth

Trejhara Solutions Limited has seen its earnings per share (EPS) increase by 5.6% a year over the past three years. It achieved revenue growth of 8.4% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Trejhara Solutions Limited Been A Good Investment?

Most shareholders would probably be pleased with Trejhara Solutions Limited for providing a total return of 362% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Trejhara Solutions that investors should look into moving forward.

Important note: Trejhara 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. 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.