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Yoshifumi Iida has been the CEO of Honda Siel Power Products Limited (NSE:HONDAPOWER) since 2015. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Yoshifumi Iida's Compensation Compare With Similar Sized Companies?
According to our data, Honda Siel Power Products Limited has a market capitalization of ₹9.8b, and pays its CEO total annual compensation worth ₹20m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹8.6m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.
As you can see, Yoshifumi Iida is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Honda Siel Power Products Limited is paying too much. 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 Honda Siel Power Products, below.
Is Honda Siel Power Products Limited Growing?
Honda Siel Power Products Limited has increased its earnings per share (EPS) by an average of 2.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.3%.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Honda Siel Power Products Limited Been A Good Investment?
Since shareholders would have lost about 18% over three years, some Honda Siel Power Products Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Honda Siel Power Products Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling Honda Siel Power Products shares (free trial).
Important note: Honda Siel Power Products may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 firstname.lastname@example.org. 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.