Abhijit Roy became the CEO of Berger Paints India Limited (NSE:BERGEPAINT) in 2012. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Abhijit Roy's Compensation Compare With Similar Sized Companies?
Our data indicates that Berger Paints India Limited is worth ₹358b, and total annual CEO compensation is ₹31m. (This number is for the twelve months until March 2019). We note that's an increase of 20% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹19m. We examined companies with market caps from ₹288b to ₹864b, and discovered that the median CEO total compensation of that group was ₹84m.
Most shareholders would consider it a positive that Abhijit Roy takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Berger Paints India has changed over time.
Is Berger Paints India Limited Growing?
On average over the last three years, Berger Paints India Limited has grown earnings per share (EPS) by 5.5% each year (using a line of best fit). It achieved revenue growth of 16% over the last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Berger Paints India Limited Been A Good Investment?
I think that the total shareholder return of 41%, over three years, would leave most Berger Paints India Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Berger Paints India Limited is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Abhijit Roy is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Berger Paints India (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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