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Bikramjit Ahluwalia is the CEO of Ahluwalia Contracts (India) Limited (NSE:AHLUCONT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Ahluwalia Contracts (India)

How Does Bikramjit Ahluwalia's Compensation Compare With Similar Sized Companies?

According to our data, Ahluwalia Contracts (India) Limited has a market capitalization of ₹22b, and pays its CEO total annual compensation worth ₹13m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹13m. We looked at a group of companies with market capitalizations from ₹14b to ₹55b, and the median CEO total compensation was ₹23m.

Most shareholders would consider it a positive that Bikramjit Ahluwalia takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Ahluwalia Contracts (India), below.

Is Ahluwalia Contracts (India) Limited Growing?

Ahluwalia Contracts (India) Limited has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). It achieved revenue growth of 6.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Ahluwalia Contracts (India) Limited Been A Good Investment?

With a total shareholder return of 18% over three years, Ahluwalia Contracts (India) Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Ahluwalia Contracts (India) Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn't mean that Bikramjit Ahluwalia is paid too much.

It's good to see reasonable payment of the CEO, even while the business improves. But it would be nice if insiders were also buying shares. So you may want to check if insiders are buying Ahluwalia Contracts (India) 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.