We believe shareholders are likely to be generous with the compensation of the CEO of Navin Fluorine International Limited (NSE: NAVINFLUOR)
It would be hard to ignore the role CEO Radhesh Welling has played in delivering impressive results at Navin Fluor International Limited (NSE: NAVIFLUOR) recently. As the next general meeting on July 26, 2021 approaches, shareholders will keep this in mind. It is likely that the focus will be on corporate strategy going forward as shareholders hear the board and vote on resolutions such as executive compensation and other matters. Here’s our take on why we think CEO pay isn’t extravagant.
See our latest review for Navin Fluorine International
Comparison of the compensation of the CEO of Navin Fluorine International Limited with the industry
Our data indicates that Navin Fluorine International Limited has a market capitalization of 192 billion yen and that the CEO’s total annual compensation has been reported at 72 million yen for the year up to March 2021. These include a 32% increase over the previous year. Notably, the salary, which is 36.3 million yen, represents a considerable part of the total compensation paid.
Compared to other companies in the industry with market caps ranging from 149 billion yen to 478 billion yen, the median total CEO compensation was 73 million yen. From this we infer that Radhesh Welling is paid around the median of industry CEOs. In addition, Radhesh Welling directly owns 31 million yen of company stock, which implies that they are deeply invested in the success of the company.
|Total compensation||₹ 72m||₹ 54m||100%|
At the industry level, approximately 88% of total compensation is salary and 12% is other compensation. Navin Fluorine International sets aside a smaller share of salary compensation, compared to the industry as a whole. If salary dominates total compensation, this suggests that CEO compensation leans less towards the variable part, which is generally performance-related.
Growth of Navin Fluorine International Limited
Navin Fluorine International Limited’s earnings per share (EPS) have grown 13% per year over the past three years. Its turnover is up 11% compared to last year.
Shareholders would be happy to know that the company has improved over the past few years. It’s also good to see decent revenue growth over the past year, which suggests the business is healthy and growing. Stepping away from the current shape for a second, it might be important to check out this free visual representation of what analysts expect for the future.
Has Navin Fluorine International Limited been a good investment?
We think the three-year total shareholder return of 554% would put a smile on the face of most Navin Fluorine International Limited shareholders. This strong performance could mean that some shareholders would not object to the CEO being paid more than is normal for a company of its size.
Given that the company performed relatively well, the CEO compensation policy might not be the focus of the AGM. Instead, investors might be more interested in discussions that would help manage their long-term growth expectations, such as the company’s business strategies and potential for future growth.
While CEO compensation is an important factor to consider, there are other areas that investors should be aware of as well. We did our research and spotted 2 warning signs for Navin Fluorine International that investors should consider moving forward.
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