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In 2006 Dinesh Patidar was appointed CEO of Shakti Pumps (India) Limited (NSE:SHAKTIPUMP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for Shakti Pumps (India)

How Does Dinesh Patidar's Compensation Compare With Similar Sized Companies?

Our data indicates that Shakti Pumps (India) Limited is worth ₹6.8b, and total annual CEO compensation is ₹17m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹17m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.

It would therefore appear that Shakti Pumps (India) Limited pays Dinesh Patidar more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Shakti Pumps (India) has changed from year to year.

Is Shakti Pumps (India) Limited Growing?

Over the last three years Shakti Pumps (India) Limited has grown its earnings per share (EPS) by an average of 46% per year (using a line of best fit). In the last year, its revenue is up 25%.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Shakti Pumps (India) Limited Been A Good Investment?

Most shareholders would probably be pleased with Shakti Pumps (India) Limited for providing a total return of 141% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We examined the amount Shakti Pumps (India) 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.

However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Shakti Pumps (India) insiders are buying or selling shares.

Important note: Shakti Pumps (India) 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.