We Think North Eastern Carrying Corporation Limited's (NSE:NECCLTD) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• North Eastern Carrying's Annual General Meeting to take place on 26th of September
• Salary of ₹4.80m is part of CEO Sunil Jain's total remuneration
• The overall pay is 48% above the industry average
• Over the past three years, North Eastern Carrying's EPS fell by 2.5% and over the past three years, the total loss to shareholders 13%

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North Eastern Carrying Corporation Limited (NSE:NECCLTD) has not performed well recently and CEO Sunil Jain will probably need to up their game. At the upcoming AGM on 26th of September, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for North Eastern Carrying

Comparing North Eastern Carrying Corporation Limited's CEO Compensation With The Industry

According to our data, North Eastern Carrying Corporation Limited has a market capitalization of ₹2.1b, and paid its CEO total annual compensation worth ₹4.8m over the year to March 2025. 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.

In comparison with other companies in the India Transportation industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹3.3m. This suggests that Sunil Jain is paid more than the median for the industry. What's more, Sunil Jain holds ₹199m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. On a company level, North Eastern Carrying prefers to reward its CEO through a salary, opting not to pay Sunil Jain through non-salary benefits. 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

Over the last three years, North Eastern Carrying Corporation Limited has shrunk its earnings per share by 2.5% per year. In the last year, its revenue is down 2.6%.

The lack of EPS growth is certainly uninspiring. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 North Eastern Carrying Corporation Limited Been A Good Investment?

Since shareholders would have lost about 13% over three years, some North Eastern Carrying Corporation Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

North Eastern Carrying rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in North Eastern Carrying we think you should know about.

Switching gears from North Eastern Carrying, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.