Here's What We Learned About The CEO Pay At Bharat Road Network Limited (NSE:BRNL)

This article will reflect on the compensation paid to Bajrang Choudhary who has served as CEO of Bharat Road Network Limited (NSE:BRNL) since 2016. This analysis will also assess whether Bharat Road Network pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Bharat Road Network

Comparing Bharat Road Network Limited's CEO Compensation With the industry

At the time of writing, our data shows that Bharat Road Network Limited has a market capitalization of ₹2.7b, and reported total annual CEO compensation of ₹14m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹14m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹4.3m. Accordingly, our analysis reveals that Bharat Road Network Limited pays Bajrang Choudhary north of the industry median.

Speaking on an industry level, nearly 96% of total compensation represents salary, while the remainder of 3.7% is other remuneration. At the company level, Bharat Road Network pays Bajrang Choudhary 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.

A Look at Bharat Road Network Limited's Growth Numbers

Over the last three years, Bharat Road Network Limited has shrunk its earnings per share by 98% per year. Its revenue is down 45% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Bharat Road Network Limited Been A Good Investment?

With a three year total loss of 81% for the shareholders, Bharat Road Network Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Bharat Road Network rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Bharat Road Network pays its CEO higher than the norm for similar-sized companies belonging 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 2 warning signs for Bharat Road Network you should be aware of, and 1 of them shouldn't be ignored.

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