Atul Mehta has been the CEO of Compuage Infocom Limited (NSE:COMPUAGE) since 2011. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Atul Mehta's Compensation Compare With Similar Sized Companies?
Our data indicates that Compuage Infocom Limited is worth ₹637m, and total annual CEO compensation was reported as ₹17m for the year to March 2019. Notably, the salary of ₹17m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.8m.
It would therefore appear that Compuage Infocom Limited pays Atul Mehta 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. 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 Compuage Infocom has changed from year to year.
Is Compuage Infocom Limited Growing?
On average over the last three years, Compuage Infocom Limited has grown earnings per share (EPS) by 8.2% each year (using a line of best fit). It achieved revenue growth of 8.9% over the last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Compuage Infocom Limited Been A Good Investment?
Given the total loss of 72% over three years, many shareholders in Compuage Infocom Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Compuage Infocom Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Compuage Infocom shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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