Karan Chanana became the CEO of Amira Nature Foods Ltd (NYSE:ANFI) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 Karan Chanana’s Compensation Compare With Similar Sized Companies?
Our data indicates that Amira Nature Foods Ltd is worth US$29m, and total annual CEO compensation is US$2m. That’s less than last year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$293k.
It would therefore appear that Amira Nature Foods Ltd pays Karan Chanana 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Amira Nature Foods has changed from year to year.
Is Amira Nature Foods Ltd Growing?
Amira Nature Foods Ltd has reduced its earnings per share by an average of 54% a year, over the last three years. In the last year, its revenue is down -24%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Amira Nature Foods Ltd Been A Good Investment?
With a three year total loss of 87%, Amira Nature Foods Ltd would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Amira Nature Foods Ltd 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.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if Amira Nature Foods Ltd insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 email@example.com.