How Much Did BKM Industries Limited's (NSE:BKMINDST) CEO Pocket Last Year?
Basant Agrawal has been the CEO of BKM Industries Limited (NSE:BKMINDST) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for BKM Industries
How Does Basant Agrawal's Compensation Compare With Similar Sized Companies?
Our data indicates that BKM Industries Limited is worth ₹140m, and total annual CEO compensation is ₹9.1m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹8.4m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.5m.
As you can see, Basant Agrawal is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean BKM Industries Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at BKM Industries has changed from year to year.
Is BKM Industries Limited Growing?
On average over the last three years, BKM Industries Limited has shrunk earnings per share by 91% each year (measured with a line of best fit). In the last year, its revenue is down -76%.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has BKM Industries Limited Been A Good Investment?
Since shareholders would have lost about 91% over three years, some BKM Industries Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount BKM Industries 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.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling BKM Industries (free visualization of insider trades).
Important note: BKM 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.
