Is Crompton Greaves Consumer Electricals Limited's (NSE:CROMPTON) CEO Pay Fair?
Mathew Job has been the CEO of Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
See our latest analysis for Crompton Greaves Consumer Electricals
How Does Mathew Job's Compensation Compare With Similar Sized Companies?
Our data indicates that Crompton Greaves Consumer Electricals Limited is worth ₹150b, and total annual CEO compensation is ₹53m. (This number is for the twelve months until March 2019). That's a fairly small increase of 2.9% on year before. While we always look at total compensation first, we note that the salary component is less, at ₹25m. We looked at a group of companies with market capitalizations from ₹72b to ₹229b, and the median CEO total compensation was ₹45m.
So Mathew Job is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Crompton Greaves Consumer Electricals, below.
Is Crompton Greaves Consumer Electricals Limited Growing?
On average over the last three years, Crompton Greaves Consumer Electricals Limited has grown earnings per share (EPS) by 17% each year (using a line of best fit). In the last year, its revenue is up 9.3%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Crompton Greaves Consumer Electricals Limited Been A Good Investment?
Most shareholders would probably be pleased with Crompton Greaves Consumer Electricals Limited for providing a total return of 57% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Mathew Job is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Crompton Greaves Consumer Electricals shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
