How Much Did Control Print's (NSE:CONTROLPR) CEO Pocket Last Year?

This article will reflect on the compensation paid to Basant Kumar Kabra who has served as CEO of Control Print Limited (NSE:CONTROLPR) since 2008. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Control Print

How Does Total Compensation For Basant Kumar Kabra Compare With Other Companies In The Industry?

Our data indicates that Control Print Limited has a market capitalization of ₹3.7b, and total annual CEO compensation was reported as ₹18m for the year to March 2020. That's a slightly lower by 3.9% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹3.3m.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹2.6m. This suggests that Basant Kumar Kabra is paid more than the median for the industry. What's more, Basant Kumar Kabra holds ₹242m 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. In Control Print's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

A Look at Control Print Limited's Growth Numbers

Over the last three years, Control Print Limited has shrunk its earnings per share by 13% per year. It saw its revenue drop 3.0% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Control Print Limited Been A Good Investment?

Given the total shareholder loss of 45% over three years, many shareholders in Control Print Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Basant Kumar is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. Arguably worse, we've been waiting for positive EPS growth for the last three years. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Control Print you should be aware of, and 1 of them is concerning.

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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