In 2016 Narayanan Krishnan was appointed CEO of Mangalore Chemicals & Fertilizers Limited (NSE:MANGCHEFER). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Mangalore Chemicals & Fertilizers

How Does Narayanan Krishnan's Compensation Compare With Similar Sized Companies?

Our data indicates that Mangalore Chemicals & Fertilizers Limited is worth ₹3.5b, and total annual CEO compensation was reported as ₹11m for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹11m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹2.4m.

As you can see, Narayanan Krishnan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Mangalore Chemicals & Fertilizers 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 Mangalore Chemicals & Fertilizers, below.

Is Mangalore Chemicals & Fertilizers Limited Growing?

On average over the last three years, Mangalore Chemicals & Fertilizers Limited has grown earnings per share (EPS) by 98% each year (using a line of best fit). In the last year, its revenue is down 3.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Mangalore Chemicals & Fertilizers Limited Been A Good Investment?

Given the total loss of 43% over three years, many shareholders in Mangalore Chemicals & Fertilizers Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We examined the amount Mangalore Chemicals & Fertilizers 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.

However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Mangalore Chemicals & Fertilizers shares (free trial).

Important note: Mangalore Chemicals & Fertilizers 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.