How Much Did Rico Auto Industries Limited's (NSE:RICOAUTO) CEO Pocket Last Year?
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The CEO of Rico Auto Industries Limited (NSE:RICOAUTO) is Arvind Kapur. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Rico Auto Industries
How Does Arvind Kapur's Compensation Compare With Similar Sized Companies?
According to our data, Rico Auto Industries Limited has a market capitalization of ₹9.1b, and pays its CEO total annual compensation worth ₹33m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹13m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m.
Thus we can conclude that Arvind Kapur receives more in total compensation than the median of a group of companies in the same market, and of similar size to Rico Auto Industries Limited. However, this doesn't necessarily mean the pay 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 Rico Auto Industries has changed from year to year.
Is Rico Auto Industries Limited Growing?
On average over the last three years, Rico Auto Industries Limited has grown earnings per share (EPS) by 80% each 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 a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Rico Auto Industries Limited Been A Good Investment?
Most shareholders would probably be pleased with Rico Auto Industries Limited for providing a total return of 114% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared the total CEO remuneration paid by Rico Auto Industries Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Rico Auto Industries (free visualization of insider trades).
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.
