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Sushil Agrawal is the CEO of Manaksia Coated Metals & Industries Limited (NSE:MNKCMILTD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Manaksia Coated Metals & Industries

How Does Sushil Agrawal's Compensation Compare With Similar Sized Companies?

According to our data, Manaksia Coated Metals & Industries Limited has a market capitalization of ₹280m, and pays its CEO total annual compensation worth ₹9.8m. (This figure is for the year to March 2018). Notably, the salary of ₹9.8m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.4m.

It would therefore appear that Manaksia Coated Metals & Industries Limited pays Sushil Agrawal more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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.

The graphic below shows how CEO compensation at Manaksia Coated Metals & Industries has changed from year to year.

Is Manaksia Coated Metals & Industries Limited Growing?

On average over the last three years, Manaksia Coated Metals & Industries Limited has shrunk earnings per share by 69% each year (measured with a line of best fit). Its revenue is up 4.5% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Manaksia Coated Metals & Industries Limited Been A Good Investment?

With a three year total loss of 49%, Manaksia Coated Metals & Industries Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Manaksia Coated Metals & Industries Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Manaksia Coated Metals & Industries shares (free trial).

Important note: Manaksia Coated Metals & Industries 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 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.