How Does MEP Infrastructure Developers' (NSE:MEP) CEO Salary Compare to Peers?

Jayant Mhaiskar has been the CEO of MEP Infrastructure Developers Limited (NSE:MEP) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether MEP Infrastructure Developers pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for MEP Infrastructure Developers

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How Does Total Compensation For Jayant Mhaiskar Compare With Other Companies In The Industry?

According to our data, MEP Infrastructure Developers Limited has a market capitalization of ₹3.1b, and paid its CEO total annual compensation worth ₹6.0m over the year to March 2020. We note that's a decrease of 67% compared to last year. Notably, the salary of ₹6.0m 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 ₹4.3m. Hence, we can conclude that Jayant Mhaiskar is remunerated higher than the industry median. What's more, Jayant Mhaiskar holds ₹243m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary₹6.0m₹18m100%
Other---
Total Compensation₹6.0m ₹18m100%

Talking in terms of the industry, salary represented approximately 96% of total compensation out of all the companies we analyzed, while other remuneration made up 3.7% of the pie. Speaking on a company level, MEP Infrastructure Developers prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
NSEI:MEP CEO Compensation February 15th 2021

MEP Infrastructure Developers Limited's Growth

Over the last three years, MEP Infrastructure Developers Limited has shrunk its earnings per share by 113% per year. In the last year, its revenue is down 43%.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has MEP Infrastructure Developers Limited Been A Good Investment?

Since shareholders would have lost about 81% over three years, some MEP Infrastructure Developers Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

MEP Infrastructure Developers rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, MEP Infrastructure Developers 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. To make matters worse, EPS growth has also been negative during this period. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for MEP Infrastructure Developers (of which 2 make us uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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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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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


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

About NSEI:MEP

MEP Infrastructure Developers

Engages in the construction, operation, and maintenance of road infrastructure in India.

Very low risk with weak fundamentals.

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