Increases to North Eastern Carrying Corporation Limited's (NSE:NECCLTD) CEO Compensation Might Cool off for now

Performance at North Eastern Carrying Corporation Limited (NSE:NECCLTD) has been reasonably good and CEO Sunil Jain has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29 September 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for North Eastern Carrying

Comparing North Eastern Carrying Corporation Limited's CEO Compensation With the industry

At the time of writing, our data shows that North Eastern Carrying Corporation Limited has a market capitalization of ₹954m, and reported total annual CEO compensation of ₹4.8m for the year to March 2021. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.8m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹2.4m. Accordingly, our analysis reveals that North Eastern Carrying Corporation Limited pays Sunil Jain north of the industry median.

Component	2021	2020	Proportion (2021)
Salary	₹4.8m	₹4.8m	100%
Other	-	-	-
Total Compensation	₹4.8m	₹4.8m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, North Eastern Carrying prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

North Eastern Carrying Corporation Limited's Growth

North Eastern Carrying Corporation Limited has seen its earnings per share (EPS) increase by 15% a year over the past three years. In the last year, its revenue is down 14%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 North Eastern Carrying Corporation Limited Been A Good Investment?

Boasting a total shareholder return of 110% over three years, North Eastern Carrying Corporation Limited has done well by shareholders. 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.

To Conclude...

North Eastern Carrying pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for North Eastern Carrying you should be aware of, and 2 of them are concerning.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.
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