What Did Alkem Laboratories Limited's (NSE:ALKEM) CEO Take Home Last Year?
Dhananjay Singh is the CEO of Alkem Laboratories Limited (NSE:ALKEM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Alkem Laboratories
How Does Dhananjay Singh's Compensation Compare With Similar Sized Companies?
According to our data, Alkem Laboratories Limited has a market capitalization of ₹236b, and paid its CEO total annual compensation worth ₹61m over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at ₹52m. We looked at a group of companies with market capitalizations from ₹142b to ₹454b, and the median CEO total compensation was ₹57m.
So Dhananjay Singh is paid around the average of 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 a visual representation of the CEO compensation at Alkem Laboratories, below.
Is Alkem Laboratories Limited Growing?
Alkem Laboratories Limited has reduced its earnings per share by an average of 2.0% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 11% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Alkem Laboratories Limited Been A Good Investment?
With a total shareholder return of 22% over three years, Alkem Laboratories Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Dhananjay Singh is paid around what is normal the leaders of comparable size companies.
The company isn't growing earnings per share, and nor have the total returns inspired us. We're not saying the CEO pay is too generous, but it's probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Alkem Laboratories (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.
