A Quick Analysis On Shreyas Shipping and Logistics' (NSE:SHREYAS) CEO Compensation

Vivek Singh is the CEO of Shreyas Shipping and Logistics Limited (NSE:SHREYAS), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Shreyas Shipping and Logistics

How Does Total Compensation For Vivek Singh Compare With Other Companies In The Industry?

Our data indicates that Shreyas Shipping and Logistics Limited has a market capitalization of ₹1.8b, and total annual CEO compensation was reported as ₹11m for the year to March 2020. That is, the compensation was roughly the same as last year. Notably, the salary which is ₹10.0m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹6.8m. Hence, we can conclude that Vivek Singh is remunerated higher than the industry median.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Shreyas Shipping and Logistics is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Shreyas Shipping and Logistics Limited's Growth

Over the last three years, Shreyas Shipping and Logistics Limited has shrunk its earnings per share by 130% per year. It saw its revenue drop 10% over the last year.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Shreyas Shipping and Logistics Limited Been A Good Investment?

Given the total shareholder loss of 86% over three years, many shareholders in Shreyas Shipping and Logistics Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Shreyas Shipping and Logistics pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, EPS growth has also been negative during this period. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Shreyas Shipping and Logistics you should be aware of, and 2 of them make us uncomfortable.

Important note: Shreyas Shipping and Logistics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

When trading Shreyas Shipping and Logistics or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.