Subrata Roy has been the CEO of Vesuvius India Limited (NSE:VESUVIUS) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

View our latest analysis for Vesuvius India

How Does Subrata Roy’s Compensation Compare With Similar Sized Companies?

Our data indicates that Vesuvius India Limited is worth ₹23b, and total annual CEO compensation is ₹16m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at ₹10m. We examined companies with market caps from ₹14b to ₹57b, and discovered that the median CEO compensation of that group was ₹22m.

So Subrata Roy receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.

You can see, below, how CEO compensation at Vesuvius India has changed over time.

Is Vesuvius India Limited Growing?

Vesuvius India Limited has increased its earnings per share (EPS) by an average of 9.2% a year, over the last three years Its revenue is up 4.1% over last year.

I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Vesuvius India Limited Been A Good Investment?

I think that the total shareholder return of 57%, over three years, would leave most Vesuvius India Limited shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Subrata Roy is paid around the same as most CEOs of similar size companies.

The company isn’t showing particularly great growth, but shareholder returns have been pleasing. So all things considered I’d venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Vesuvius India.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.