Deepak Nanda is the CEO of Trident Limited (NSE:TRIDENT). 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.
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How Does Deepak Nanda's Compensation Compare With Similar Sized Companies?
Our data indicates that Trident Limited is worth ₹33b, and total annual CEO compensation is ₹22m. (This figure is for the year to March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹22m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹14b to ₹56b. The median total CEO compensation was ₹22m.
That means Deepak Nanda receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Trident has changed from year to year.
Is Trident Limited Growing?
Over the last three years Trident Limited has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). It achieved revenue growth of 16% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Trident Limited Been A Good Investment?
Most shareholders would probably be pleased with Trident Limited for providing a total return of 34% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Deepak Nanda is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Trident (free visualization of insider trades).
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.
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