Noida Toll Bridge Company Limited's (NSE:NOIDATOLL) CEO Compensation Looks Acceptable To Us And Here's Why

Performance at Noida Toll Bridge Company Limited (NSE:NOIDATOLL) has been reasonably good and CEO Rajiv Jain has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30 September 2022. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Noida Toll Bridge

How Does Total Compensation For Rajiv Jain Compare With Other Companies In The Industry?

Our data indicates that Noida Toll Bridge Company Limited has a market capitalization of ₹1.5b, and total annual CEO compensation was reported as ₹4.8m for the year to March 2022. That's a slight decrease of 4.7% on the prior year. Notably, the salary which is ₹4.40m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below ₹16b, reported a median total CEO compensation of ₹5.8m. This suggests that Noida Toll Bridge remunerates its CEO largely in line with the industry average.

Component	2022	2021	Proportion (2022)
Salary	₹4.4m	₹4.6m	92%
Other	₹361k	₹365k	8%
Total Compensation	₹4.8m	₹5.0m	100%

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Our data reveals that Noida Toll Bridge allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Noida Toll Bridge Company Limited's Growth

Over the last three years, Noida Toll Bridge Company Limited has shrunk its earnings per share by 2.9% per year. In the last year, its revenue is up 63%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Noida Toll Bridge Company Limited Been A Good Investment?

We think that the total shareholder return of 70%, over three years, would leave most Noida Toll Bridge Company Limited shareholders smiling. 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.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Noida Toll Bridge we think you should know about.

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. 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.