Mukesh Sangla became the CEO of Signet Industries Limited (NSE:SIGNETIND) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Signet Industries
How Does Mukesh Sangla’s Compensation Compare With Similar Sized Companies?
Our data indicates that Signet Industries Limited is worth ₹1.1b, and total annual CEO compensation is ₹8.4m. (This number is for the twelve months until 2018). Notably, the salary of ₹8.4m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO compensation in that group is ₹1.5m.
Thus we can conclude that Mukesh Sangla receives more in total compensation than the median of a group of companies in the same market, and of similar size to Signet Industries Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Signet Industries has changed over time.
Is Signet Industries Limited Growing?
Over the last three years Signet Industries Limited has grown its earnings per share (EPS) by an average of 5.3% per year. It saw its revenue drop -5.6% over the last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Signet Industries Limited Been A Good Investment?
Given the total loss of 94% over three years, many shareholders in Signet Industries Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We examined the amount Signet Industries Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we’d stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Signet Industries shares (free trial).