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Rajesh Mokashi has been the CEO of CARE Ratings Limited (NSE:CARERATING) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for CARE Ratings

How Does Rajesh Mokashi's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that CARE Ratings Limited has a market cap of ₹28b, and is paying total annual CEO compensation of ₹25m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹17m. We looked at a group of companies with market capitalizations from ₹14b to ₹56b, and the median CEO total compensation was ₹22m.

So Rajesh Mokashi is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at CARE Ratings has changed from year to year.

Is CARE Ratings Limited Growing?

Over the last three years CARE Ratings Limited has grown its earnings per share (EPS) by an average of 5.9% per year (using a line of best fit). In the last year, its revenue is up 2.2%.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.

Has CARE Ratings Limited Been A Good Investment?

CARE Ratings Limited has not done too badly by shareholders, with a total return of 3.1%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Rajesh Mokashi is paid around what is normal the leaders of comparable size companies.

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CARE Ratings.

If you want to buy a stock that is better than CARE Ratings, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.