Does Everest Industries Limited's (NSE:EVERESTIND) CEO Pay Compare Well With Peers?
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Manish Sanghi became the CEO of Everest Industries Limited (NSE:EVERESTIND) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
Check out our latest analysis for Everest Industries
How Does Manish Sanghi's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Everest Industries Limited has a market cap of ₹6.5b, and is paying total annual CEO compensation of ₹22m. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹7.4m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.
Thus we can conclude that Manish Sanghi receives more in total compensation than the median of a group of companies in the same market, and of similar size to Everest Industries Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Everest Industries, below.
Is Everest Industries Limited Growing?
Everest Industries Limited has increased its earnings per share (EPS) by an average of 34% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Everest Industries Limited Been A Good Investment?
I think that the total shareholder return of 37%, over three years, would leave most Everest Industries Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We examined the amount Everest Industries Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Everest Industries (free visualization of insider trades).
If you want to buy a stock that is better than Everest Industries, 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.
