Weighing in on the bonus discussion, I am wondering why people act surprised? Whether you agree or disagree with the structure, Centum, unlike a lot of NSE firms, is upfront about exactly how they award bonuses.
"Our variable performance based reward system is key as it addresses the critical balance between employee reward and shareholder wealth creation. We have in place a bonus structure which recognizes outperformance. Participation in the bonus pool is determined by both corporate and individual performance. On corporate performance, a return on opening shareholder funds in excess of a hurdle rate of 15% is targeted each year. Should this be achieved, the team is then entitled to a bonus pool of 20% of the return in excess of the hurdle rate." Centum AR 2015, pg. 133.
It is a fairly generic approach, actually. The question to me, therefore, is whether or not you think the bonus structure will help or hinder the capital appreciation of your investment in the company. If you think it hurts, don't invest. If you think it helps, then invest. Skip the drama. Just think about it and make a decision.
What will be interesting moving forward is if they shift it as the company shifts. They said at the investor briefing that they are now essentially a conglomerate rather than a portfolio investor. To me, that means some thought should be given to whether this approach is still ideal or if something new needs to replace it.