How Is TCI Express' (NSE:TCIEXP) CEO Paid Relative To Peers?

The CEO of TCI Express Limited (NSE:TCIEXP) is Chander Agarwal, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for TCI Express.

View our latest analysis for TCI Express

Comparing TCI Express Limited's CEO Compensation With the industry

Our data indicates that TCI Express Limited has a market capitalization of ₹37b, and total annual CEO compensation was reported as ₹77m for the year to March 2020. Notably, that's an increase of 18% over the year before. We note that the salary portion, which stands at ₹41.8m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from ₹14b to ₹58b, we found that the median CEO total compensation was ₹27m. Accordingly, our analysis reveals that TCI Express Limited pays Chander Agarwal north of the industry median. Moreover, Chander Agarwal also holds ₹1.2b worth of TCI Express stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 97% of total compensation represents salary and 3.3% is other remuneration. It's interesting to note that TCI Express allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

TCI Express Limited's Growth

TCI Express Limited's earnings per share (EPS) grew 11% per year over the last three years. In the last year, its revenue is down 24%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has TCI Express Limited Been A Good Investment?

Boasting a total shareholder return of 88% over three years, TCI Express 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...

As we noted earlier, TCI Express pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Chander's performance creates value for the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for TCI Express that investors should be aware of in a dynamic business environment.

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. 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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