Here's What We Think About Balmer Lawrie & Co. Ltd.'s (NSE:BALMLAWRIE) CEO Pay
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Prabal Basu became the CEO of Balmer Lawrie & Co. Ltd. (NSE:BALMLAWRIE) in 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. 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.
See our latest analysis for Balmer Lawrie
How Does Prabal Basu's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Balmer Lawrie & Co. Ltd. has a market cap of ₹21b, and is paying total annual CEO compensation of ₹8.0m. (This figure is for the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹5.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹6.9b to ₹27b. The median total CEO compensation was ₹17m.
Most shareholders would consider it a positive that Prabal Basu takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Balmer Lawrie, below.
Is Balmer Lawrie & Co. Ltd. Growing?
Earnings per share at Balmer Lawrie & Co. Ltd. are much the same as they were three years ago, albeit with a positive trend. Its revenue is up 2.9% over last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Balmer Lawrie & Co. Ltd. Been A Good Investment?
Boasting a total shareholder return of 34% over three years, Balmer Lawrie & Co. Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that Balmer Lawrie & Co. Ltd. remunerates its CEO below most similar sized companies.
Prabal Basu is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Balmer Lawrie.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
