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Does ExlService Holdings, Inc.'s (NASDAQ:EXLS) CEO Salary Reflect Performance?

Simply Wall St

Rohit Kapoor has been the CEO of ExlService Holdings, Inc. (NASDAQ:EXLS) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for ExlService Holdings

How Does Rohit Kapoor's Compensation Compare With Similar Sized Companies?

Our data indicates that ExlService Holdings, Inc. is worth US$2.5b, and total annual CEO compensation was reported as US$5.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$720k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$4.9m.

So Rohit Kapoor receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at ExlService Holdings has changed over time.

NasdaqGS:EXLS CEO Compensation, January 20th 2020

Is ExlService Holdings, Inc. Growing?

On average over the last three years, ExlService Holdings, Inc. has shrunk earnings per share by 13% each year (measured with a line of best fit). It achieved revenue growth of 15% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. 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. Shareholders might be interested in this free visualization of analyst forecasts.

Has ExlService Holdings, Inc. Been A Good Investment?

Boasting a total shareholder return of 52% over three years, ExlService Holdings, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Rohit Kapoor is paid around what is normal the leaders of comparable size companies.

The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ExlService Holdings.

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.

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.

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. Thank you for reading.