Prakash Patil is the CEO of Aarti Drugs Limited (NSE:AARTIDRUGS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Prakash Patil's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Aarti Drugs Limited has a market cap of ₹12b, and reported total annual CEO compensation of ₹15m for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at ₹6.9m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹7.1b to ₹28b. The median total CEO compensation was ₹20m.
So Prakash Patil receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Aarti Drugs, below.
Is Aarti Drugs Limited Growing?
Over the last three years Aarti Drugs Limited has grown its earnings per share (EPS) by an average of 9.6% per year (using a line of best fit). Its revenue is up 26% over last year.
It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. I wouldn't say this is necessarily top notch growth, but it is certainly promising. It could be important to check this free visual depiction of what analysts expect for the future.
Has Aarti Drugs Limited Been A Good Investment?
Given the total loss of 15% over three years, many shareholders in Aarti Drugs Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Prakash Patil is paid around what is normal the leaders of comparable size companies.
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So many would argue that the CEO is certainly not underpaid. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Aarti Drugs (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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